CENTRAL PACIFIC FINANCIAL CORP

Previous wording

Certain statements contained in this quarterly report on Form 10-Q that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in our future filings with the U.S. Securities and Exchange Commission ("SEC"), in press releases and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, the payment or nonpayment of dividends, net interest income, capital position, credit losses, net interest margin or other financial items; (ii) statements of plans, objectives and expectations of Central Pacific Financial Corp. (the "Company") or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services and regulatory developments and regulatory actions; (iii) statements of future economic performance including anticipated performance results from our business initiatives; and (iv) any statements of the assumptions underlying or relating to any of the foregoing. Words such as "believe," "plan," "anticipate," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Current wording

Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, payment or nonpayment of dividends, net interest income, capital position, credit losses, net interest margin or other financial items; (ii) statements of plans, objectives, and expectations of Central Pacific Financial Corp. (the "Company") or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services, and regulatory developments or actions; (iii) statements of future economic performance including anticipated performance results from our business initiatives; and (iv) any statements of the assumptions underlying or relating to any of the foregoing.

Previous wording

While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could differ materially from those statements or projections for a variety of reasons. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

Current wording

While we believe that our forward-looking statements and their underlying assumptions are reasonably based, such statements are inherently subject to risks and uncertainties that may cause actual results to differ materially from expectations. Factors that may lead to such differences include, but are not limited to:

Previous wording

•the effects of the persistence of current inflationary pressures, or the resurgence of elevated levels of inflation in the United States and our market areas, and its impact on market interest rates, the economy and credit quality;

Current wording

•the persistence or resurgence of current inflationary pressures in the United States and our market areas, and their effect on market interest rates, economic conditions, and credit quality;

Previous wording

•the impact of the current U.S. administration's recent economic policies, including international tariffs, and other cost-cutting initiatives;

Current wording

•the impact of the current U.S. administration's economic policies, including potential international tariffs, and other cost-cutting initiatives;

Previous wording

•disruptions in the economy, including supply chain disruptions;

Current wording

•disruptions in the economy, including the effects of government shutdown(s) and supply chain disruptions;

Previous wording

•the impact of local, national, and international economies and events (including natural disasters such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, and earthquakes) on the Company's business and operations and on tourism, the military, and other major industries operating within the Hawaii market and any other markets in which the Company does business;

Current wording

•the impact of local, national, and international economic conditions and natural disasters (such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, or earthquakes) on our markets and major industries within Hawaii;

Previous wording

•the adverse effects of bank failures and the potential impact of such developments on customer confidence, deposit behavior, liquidity and regulatory responses thereto;

Current wording

•the adverse effects of bank failures on customer confidence, deposit behavior, liquidity and regulatory responses;

Previous wording

•the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board ("PCAOB"), the Financial Accounting Standards Board ("FASB") and other accounting standard setters and the cost and resources required to implement such changes;

Current wording

•the effects of accounting standard changes adopted by regulatory agencies, the Public Company Accounting Oversight Board ("PCAOB"), or the Financial Accounting Standards Board ("FASB"), and the cost and resources associated with implementation;

Previous wording

•the effects of and changes in trade, tariff, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System (the "FRB" or the "Federal Reserve");

Current wording

•changes in trade, tariff, monetary, or fiscal policies and laws, including actions by the Board of Governors of the Federal Reserve System (the "FRB" or the "Federal Reserve");

Previous wording

•securities market and monetary fluctuations, including the impact resulting from the elimination of the London Interbank Offered Rate Index;

Current wording

•market volatility and monetary fluctuations, including the transition away from the London Interbank Offered Rate Index;

Previous wording

•negative trends in our market capitalization and adverse changes in the price of the Company's common stock;

Current wording

•declines in our market capitalization or changes in the price of the Company's common stock;

Previous wording

•changes in consumer spending, borrowings and savings habits;

Current wording

•shifts in consumer spending, borrowings, and savings behaviors;

Previous wording

•the ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures;

Current wording

•deficiencies in our internal controls over financial reporting or disclosure controls, and our ability to remediate them;

Previous wording

•uncertainty regarding United States fiscal debt, deficit and budget matters; and

Current wording

•risks related to the United States fiscal debt, deficit and budget uncertainties; and

Previous wording

For further information with respect to factors that could cause actual results to materially differ from the expectations or projections stated in the forward-looking statements, please see the Company's publicly available Securities and Exchange Commission filings, including the Company's Forms 10-Q and 10-K for the current fiscal quarter and the last fiscal year, respectively, and in particular, the discussion of "Risk Factors" set forth therein and herein. We urge investors to consider all of these factors carefully in evaluating the forward-looking statements contained in this document. Forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events except as required by law.

Current wording

For further information with respect to factors that could cause actual results to materially differ from the expectations or projections stated in the forward-looking statements, please see the Company's publicly available Securities and Exchange Commission filings, including the Company's Forms 10-Q and 10-K for the current fiscal quarter and the last fiscal year, respectively, and in particular, the discussion of "Risk Factors" set forth herein and therein. We urge investors to consider all of these factors carefully in evaluating the forward-looking statements contained in this document. Forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events except as required by law.

Previous wording

Central Pacific Financial Corp. ("CPF"), a Hawaii corporation and a bank holding company registered under the Bank Holding Company Act of 1956, as amended (the "BHC Act"), was organized on February 1, 1982. Our principal business is to serve as a holding company for our bank subsidiary, Central Pacific Bank, which was incorporated in its present form in the State of Hawaii on March 16, 1982 in connection with the holding company reorganization. Its predecessor entity was incorporated in the State of Hawaii on January 15, 1954. We provide financial results based on a fiscal year ending December 31 as a single reportable segment.

Current wording

Central Pacific Financial Corp. ("CPF"), a Hawaii corporation and registered bank holding company under the Bank Holding Company Act of 1956, as amended (the "BHC Act"), was organized on February 1, 1982. CPF serves as the bank holding company for its principal subsidiary, Central Pacific Bank, which was incorporated in its present form in the State of Hawaii on March 16, 1982, following a holding company reorganization. The Bank's predecessor entity was originally incorporated in the State of Hawaii on January 15, 1954.

Previous wording

We refer to Central Pacific Bank herein as "our Bank" or "the Bank," and when we say "the Company," "we," "us" or "our," we mean the holding company on a consolidated basis with the Bank and our other consolidated subsidiaries.

Current wording

Throughout this document, "Central Pacific Bank" is referred to as "our Bank" or "the Bank," and "the Company," "we," "us," or "our," refers to Central Pacific Financial Corp. on a consolidated basis, including the Bank and other consolidated subsidiaries.

Previous wording

Central Pacific Bank is a full-service community bank with 27 branches and 55 ATMs located throughout the State of Hawaii as of June 30, 2025.

Current wording

As of September 30, 2025, Central Pacific Bank operated 27 branches and 55 ATMs across the State of Hawaii, offering full-service community banking.

Previous wording

We were founded by World War II veterans who were not offered the same banking courtesies in Hawaii, even though they came home from the war as heroes. They founded the Bank to serve the needs of individuals and small businesses that did not have access to financial services in Hawaii at the time. We strive to provide exceptional customer service and products that meet our customers' needs, including:

Current wording

The Bank was founded by World War II veterans who, despite returning home as war heroes, were not afforded the same banking opportunities in Hawaii. In response, they established the Bank to serve individuals and small businesses in Hawaii that lacked access to financial services at the time. This legacy continues to shape our mission to deliver exceptional customer service and tailored financial products that meet our customers' needs, including:

Previous wording

•Loans: Our loans consist of commercial and industrial, commercial mortgage, and construction loans to small and medium-sized companies, business professionals, and real estate investors and developers, as well as residential mortgage, home equity, and consumer loans to homeowners and individuals. Our lending activities contribute to a key component of our revenues reported in interest income. We strive for a strong and diverse loan portfolio in Hawaii and selective mainland markets.

Current wording

•Loans: The Company's loan portfolio includes commercial and industrial loans, commercial mortgages, and construction loans to small and medium-sized businesses, professionals, and real estate investors and developers. The Company also offers residential mortgages, home equity loans, and consumer loans to individuals and homeowners. Lending activities represent a core source of interest income, which is a key driver of our overall revenue. The Company aims to maintain a strong and diversified loan portfolio, primarily in Hawaii, with selective expansion into mainland markets.

Previous wording

Additionally, we offer wealth management products and services, such as non-deposit investment products, annuities, investment management, trust custody, estate and financial planning services.

Current wording

•Wealth Management: The Company offers non-deposit investment products, annuities, investment management, trust custody, estate planning, and financial advisory services.

Previous wording

Management's discussion and analysis of financial condition and results of operations should be read in conjunction with the accompanying consolidated financial statements under "Part I, Item 1. Financial Statements (Unaudited)." The following discussion should also be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the "SEC") on February 26, 2025, including the “Risk Factors” set forth therein.

Current wording

This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the accompanying unaudited consolidated financial statements under "Part I, Item 1. Financial Statements." The following discussion should also be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the "SEC") on February 26, 2025, including the "Risk Factors" disclosed therein.

Previous wording

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires that management make certain judgments and use certain estimates and assumptions that affect amounts reported and disclosures made. Actual results may differ from those estimates and such differences could be material to the financial statements.

Current wording

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain judgments, estimates and assumptions that affect reported amounts and disclosures. Actual results may differ from these estimates, and such differences could be material to the financial statements.

Previous wording

Accounting estimates are deemed critical when a different estimate could have reasonably been used or where changes in the estimate are reasonably likely to occur from period-to-period and would materially impact our consolidated financial statements as of or for the periods presented. Management has discussed the development and selection of the critical accounting estimates noted below with the Audit Committee of the Board of Directors, and the Audit Committee has reviewed the accompanying disclosures.

Current wording

Accounting estimates are deemed critical when a different estimate could reasonably have been used or where changes in the estimate are reasonably likely to occur from period-to-period and would materially impact the consolidated financial statements as of or for the periods presented.

Previous wording

The Company identified a significant accounting policy, which involves a higher degree of judgment and complexity in making certain estimates and assumptions that affect amounts reported in our consolidated financial statements. As of June 30, 2025 and December 31, 2024, the significant accounting policy that we believed to be the most critical in preparing our consolidated financial statements is the determination of the allowance for credit losses ("ACL") on loans. This is further described in Note 1 - Summary of Significant Accounting Policies included in the accompanying notes to the consolidated financial statements, Note 1 - Summary of Significant Accounting Policies included in the accompanying notes to the consolidated financial statements for the year ended December 31, 2024, and the section titled "Critical Accounting Policies and Use of Estimates" in Management's Discussion and Analysis of Financial Condition and Operating Results included in the Company's 2024 Annual Report on Form 10-K.

Current wording

Management has identified the determination of the allowance for credit losses ("ACL") on loans as a critical accounting policy as of September 30, 2025 and December 31, 2024. This policy requires significant judgment and involves inherent complexity. Additional information regarding this policy is provided in Note 1 - Summary of Significant Accounting Policies included in the accompanying notes to the consolidated financial statements, as well as in Note 1 and the section titled "Critical Accounting Policies and Use of Estimates" within Management's Discussion and Analysis of Financial Condition and Operating Results in the Company's 2024 Annual Report on Form 10-K.

Previous wording

Net income for the three months ended June 30, 2025 was $18.3 million, or $0.67 per diluted share, compared to net income of $15.8 million, or $0.58 per diluted share for the three months ended June 30, 2024. Net income for the six months ended June 30, 2025 was $36.0 million, or $1.33 per diluted share, compared to net income of $28.8 million, or $1.06 per diluted share for the six months ended June 30, 2024.

Current wording

For the three months ended September 30, 2025, the Company reported net income of $18.6 million, or $0.69 per diluted share, compared to net income of $13.3 million, or $0.49 per diluted share for the same period in 2024. For the nine months ended September 30, 2025 net income was $54.6 million, or $2.01 per diluted share, compared to net income of $42.1 million, or $1.55 per diluted share for the nine months ended September 30, 2024.

Previous wording

During the three months ended June 30, 2025, the Company recorded a provision for credit losses of $5.0 million, compared to a provision of $2.2 million during the three months ended June 30, 2024. During the six months ended June 30, 2025, the Company recorded a provision for credit losses of $9.2 million, compared to a provision of $6.2 million during the six months ended June 30, 2024. The increase in the provision was primarily driven by the macro-economic forecast used in our current expected credit losses model, combined with higher off-balance sheet credit exposure related to new unfunded construction loan commitments.

Current wording

During the three months ended September 30, 2025, the Company recorded a provision for credit losses of $4.2 million, compared to a provision of $2.8 million during the same period in 2024. During the nine months ended September 30, 2025, the Company recorded a provision for credit losses of $13.3 million, compared to a provision of $9.0 million during the nine months ended September 30, 2024. The increase in the provision was primarily driven by an increase in loans, changes in the macro-economic forecast used in the current expected credit losses model, along with higher off-balance sheet credit exposure related to new unfunded construction loan commitments.

Previous wording

The Company's pre-provision net revenue ("PPNR"), a non-GAAP financial measure which excludes the provision for credit losses and income tax expense from net income, for the three months ended June 30, 2025 was $28.9 million, compared to $22.9 million for the three months ended June 30, 2024. The Company's PPNR for the six months ended June 30, 2025 was $55.6 million, compared to $43.7 million for the six months ended June 30, 2024. See the following section titled "Non-GAAP Financial Measures" for reconciliation of PPNR.

Current wording

The Company's pre-provision net revenue ("PPNR"), a non-GAAP financial measure that excludes the provision for credit losses and income tax expense from net income, was $27.8 million for the three months ended September 30, 2025, compared to $19.9 million for the same period in 2024. The Company's PPNR for the nine months ended September 30, 2025 was

Previous wording

The following table presents annualized returns on average assets ("ROA") and average shareholders' equity ("ROE"), and basic and diluted earnings per share ("EPS") for the periods presented. ROA and ROE are annualized based on a 30/360 day convention.

Current wording

The following table presents annualized returns on average assets ("ROA") and average shareholders' equity ("ROE"), as well as basic and diluted earnings per share ("EPS") for the periods presented. ROA and ROE are annualized using a 30/360 day convention.

Previous wording

The higher PPNR in the second quarter of 2025 and six months ended June 30, 2025 were primarily due to higher net interest income of $7.9 million and $15.4 million, respectively, compared to the same year-ago periods. The higher net interest income was primarily due to higher average yields earned on interest-earning assets, combined with lower average rates paid on interest-bearing deposits.

Current wording

The increase in PPNR in the third quarter of 2025 and nine months ended September 30, 2025 was primarily driven by higher net interest income of $7.5 million and $22.8 million, respectively, compared to the same prior-year periods. The higher net interest income was largely attributable to higher average yields earned on interest-earning assets, combined with lower average rates paid on interest-bearing deposits.

Previous wording

A key measure of operating efficiency tracked by the Company is the efficiency ratio, which is derived from GAAP-based amounts, as is calculated by dividing total other operating expenses by total pre-provision revenue (net interest income plus total other operating income). The Company believes that the efficiency ratio, a non-GAAP financial measure, provides useful supplemental information that is important to a proper understanding of its business results and operating efficiency. The Company's efficiency ratio should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to the efficiency ratio presented by other companies.

Current wording

A key measure of operating efficiency monitored by the Company is the efficiency ratio, which is derived from GAAP-based amounts. It is calculated by dividing total other operating expenses by total pre-provision revenue (defined as net interest income plus total other operating income). The Company believes that the efficiency ratio, a non-GAAP financial measure, provides a useful supplemental metric that enhances understanding of its business performance and operating efficiency. However, this ratio should not be viewed as a substitute for GAAP results and may not be comparable to similarly titled measures reported by other companies. The following table presents the Company's efficiency ratio and adjusted efficiency ratio for the periods presented:

Previous wording

The improvement in the efficiency ratio in the second quarter of 2025 and six months ended June 30, 2025, compared to the same year-ago periods, were primarily due to higher net interest income and other operating income, despite higher other operating expense.

Current wording

The improvements in the efficiency ratio in the third quarter of 2025 and nine months ended September 30, 2025, compared to the same periods in 2024, was primarily driven by higher net interest income and other operating income, which more than offset the increase in other operating expense.

Previous wording

The following table presents our tangible common equity ("TCE") ratio, a non-GAAP financial measure, which is calculated by dividing tangible common equity by tangible assets, as of the dates presented:

Current wording

The tangible common equity ("TCE") ratio, a non-GAAP financial measure, is calculated by dividing tangible common equity by tangible assets. The following table presents the Company's TCE ratio and adjusted TCE ratio as of the dates presented:

Previous wording

The majority of our operations are concentrated in the State of Hawaii. As a result, our performance is significantly influenced by the strength of the real estate markets, the tourism industry, and the economic and environmental conditions in Hawaii, along with the effect of macroeconomic conditions. A favorable business environment is generally characterized by expanding gross state product, low unemployment and rising personal income, while an unfavorable business environment is characterized by the opposite.

Current wording

Our operations are primarily concentrated in the State of Hawaii, making our performance highly sensitive to local economic, environmental, and industry-specific conditions—particularly those affecting real estate, tourism, and broader macroeconomic trends. A favorable business climate in Hawaii is typically characterized by expanding gross state product, low unemployment and rising personal income, while an unfavorable climate reflects the opposite.

Previous wording

According to a May 2025 report by the University of Hawaii Economic Research Organization ("UHERO"), total visitor arrivals by air are expected to be approximately 9.47 million in 2025, which is a decrease of approximately 2.2% from 9.69 million in 2024. Visitor spending is expected to decline by approximately 5.7% to $19.40 billion in 2025 from $20.58 billion in 2024.

Current wording

According to a September 2025 forecast report by the University of Hawaii Economic Research Organization ("UHERO"), Hawaii's tourism sector will experience a modest decline. Total visitor arrivals by air are expected to decline by approximately 1.3% to 9.58 million in 2025, down from 9.71 million in 2024. Visitor spending is also expected to decline by approximately 1.4% to $20.19 billion in 2025, down from $20.48 billion in 2024. While early-year gains, especially on Maui, offered some optimism, the sector now faces mounting challenges including sharp declines in international arrivals, particularly from Japan and Canada, driven by weaker foreign currencies, reduced airlift, and soft booking trends. Additionally, domestic travel demand is expected to weaken due to rising costs and economic uncertainty. Federal policy disruptions, such as high U.S. import tariffs, sweeping federal layoffs, and volatile immigration and fiscal policies, have further undermined consumer confidence and global travel sentiment, compounding the sector’s struggles. A full recovery in visitor arrivals is not expected until 2028.

Previous wording

The Department of Labor and Industrial Relations reported that Hawaii's seasonally adjusted annual unemployment rate was 2.8% in the month of June 2025, compared to 2.9% in the month of June 2024 and the national seasonally adjusted unemployment rate of 4.1% in the month of June 2025. UHERO projects Hawaii's seasonally adjusted annual unemployment rate to remain low at approximately 3.1% in 2025.

Current wording

The Department of Labor and Industrial Relations reported that Hawaii's seasonally adjusted annual unemployment rate was 2.7% in August 2025, slightly lower than 3.0% in August 2024 and well below the national seasonally adjusted unemployment rate of 4.3%. UHERO forecasts Hawaii's seasonally adjusted annual unemployment rate to remain steady at 3.0% for the full year 2025.

Previous wording

Real estate lending is one of the primary focuses for the Company, including residential mortgage and commercial mortgage loans. As a result, the Company is dependent on the strength of Hawaii's real estate market. The Hawaii housing market overall remained strong in the first half of 2025 despite some mixed results. According to the Honolulu Board of Realtors, sales of Oahu single-family homes in the six months ended June 30, 2025 were down 2.1%, while sales of Oahu condominiums were down 6.0% from the same prior year period. The Oahu single-family home median price in the six months ended June 30, 2025 rose by 6.0% to $1.2 million from $1.1 million in the same prior year period. The Oahu condominium median price in the six months ended June 30, 2025 declined by 0.5% to $507,000 from $510,000 in the same prior year period.

Current wording

Real estate lending, particularly residential and commercial mortgage loans, is a core focus of the Company. Consequently, our performance is closely tied to the health of Hawaii's real estate market. Despite mixed results, Hawaii's housing market remained resilient in the nine months ended September 30, 2025. According to the Honolulu Board of Realtors, sales of Oahu single-family homes rose 0.8%, while Oahu condominium sales fell 3.0% in the nine months ended September 30, 2025, compared to the same period in 2024. The median sale price of Oahu single-family homes increased 4.1% to $1.15 million in the nine months ended September 30, 2025, compared to $1.1 million in the same period in 2024. The median sale price of Oahu condominiums declined by 1.0% to $505,000 in the nine months ended September 30, 2025, compared to $510,000 in the same period in 2024.

Previous wording

Changes in monetary policy, including changes in interest rates, could influence: (i) the amount of interest we receive on loans and securities, (ii) the amount of interest we pay on deposits and borrowings, (iii) our ability to originate loans and obtain deposits, and (iv) the fair value of our assets and liabilities, among other things.

Current wording

Changes in monetary policy, particularly interest rate movements, can significantly impact operations by affecting: (i) interest income on loans and investment securities, (ii) interest expense on deposits and borrowings, (iii) loan origination and deposit acquisition, and (iv) the fair value of our assets and liabilities, among other factors.

Previous wording

In an effort to rein in inflation, the FRB aggressively increased interest rates beginning in the first quarter of 2022, when the Federal Funds Rate target range was 0.00% to 0.25%. Over the following 18 months, the FRB raised the rate by more than five percentage points, reaching a 22-year high of 5.25% to 5.50%. The rate remained the same until September 2024, when the Federal Open Market Committee ("FOMC") lowered the target range by 50 basis points ("bp" or "bps") to 4.75% to 5.00%, reflecting increased confidence that inflation was sustainably moving towards the 2% target. Additional 25 bps cuts followed in November and December 2024, bringing the target range to 4.25% to 4.50% by year-end.

Current wording

To combat inflation, the FRB raised the Federal Funds rate from a target range of 0.00% to 0.25% in early 2022 to a 22-year high of 5.25% to 5.50% by mid-2023. The rate remained unchanged until September 2024, when the Federal Open Market Committee ("FOMC") initiated a series of rate cuts, lowering the target range to 4.25% to 4.50% by year-end 2024.

Previous wording

A comparison of net interest income and net interest margin on a taxable-equivalent basis for the three and six months ended June 30, 2025 and 2024 is presented below. Net interest margin is defined as annualized net interest income, on a taxable-equivalent basis using a federal statutory tax rate of 21%, as a percentage of average interest earning assets.

Current wording

A comparison of net interest income and net interest margin on a taxable-equivalent basis for the three and nine months ended September 30, 2025 and 2024 is presented below. Net interest margin is calculated as annualized net interest income, adjusted to a taxable-equivalent basis using a federal statutory tax rate of 21%, expressed as a percentage of average interest-earning assets.