Highlights include:

Net income of $13.3 million, or $0.49 per diluted share. Excluding $3.1 million in pre-tax expenses related to a strategic opportunity, adjusted net income (non-GAAP) was $15.7 million, or $0.58 per diluted share.
Net interest margin of 3.07% increased by 10 bps from 2.97% in the previous quarter
Total loans of $5.34 billion decreased by $41.0 million from the previous quarter
Core deposits of $5.97 billion increased by $53.9 million from the previous quarter. Total deposits of $6.58 billion increased by $0.6 million from the previous quarter, which included a decrease in government time deposits of $69.1 million.
Total risk-based capital and common equity tier 1 ratios of 15.3% and 12.1%, respectively
The CPF Board of Directors approved a quarterly cash dividend of $0.26 per share

Central Pacific Financial Corp. (NYSE:CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $13.3 million, or fully diluted earnings per share ("EPS") of $0.49 for the third quarter of 2024, compared to net income of $15.8 million, or EPS of $0.58 in the previous quarter and net income of $13.1 million, or EPS of $0.49 in the year-ago quarter. Results for the third quarter of 2024 were impacted by $3.1 million in pre-tax expenses related to our evaluation and assessment of a strategic opportunity. While the parties are no longer currently engaged in discussions, we remain interested in the opportunity under the right terms and conditions. Excluding these expenses, adjusted net income and EPS (non-GAAP) for the quarter was approximately $15.7 million and $0.58, respectively.

"Our third quarter core results were strong and we continue to pursue our strategies for future growth and additional internal operating efficiencies," said Arnold Martines, Chairman, President and Chief Executive Officer. "Our net interest income and net interest margin expanded as we successfully managed the balance sheet and repricing in this evolving interest rate environment."

"Central Pacific remains committed to supporting our customers and communities. We were pleased to open a new state-of-the-art branch in Kahului to support the business and personal financial needs of the Maui community as we move to expand our presence on the neighbor islands," Martines said.

Earnings Highlights

Net interest income was $53.9 million for the third quarter of 2024, which increased by $1.9 million, or 3.7% from the previous quarter, and increased by $1.9 million, or 3.7% from the year-ago quarter. Net interest margin ("NIM") was 3.07% for the third quarter of 2024, an increase of 10 basis points ("bp" or "bps") from the previous quarter and an increase of 19 bp from the year-ago quarter. The sequential quarter increase in net interest income and NIM was primarily due to higher average yields earned on investment securities and loans of 11 and 9 bps, respectively, combined with a 1 bp decline in average rates paid on interest-bearing deposits. The higher average yield earned on investment securities in the third quarter of 2024 includes $1.1 million in income from an interest rate swap that became effective on March 31, 2024, compared to $0.9 million in the second quarter of 2024.

The Company recorded a provision for credit losses of $2.8 million in the third quarter of 2024, compared to a provision of $2.2 million in the previous quarter and a provision of $4.9 million in the year-ago quarter. The provision in the current quarter consisted of a provision for credit losses on loans of $3.0 million, offset by a credit to the provision for off-balance sheet exposures of $0.2 million.

Other operating income totaled $12.7 million for the third quarter of 2024, compared to $12.1 million in the previous quarter and $10.0 million in the year-ago quarter. The higher other operating income was primarily due to higher income from bank-owned life insurance of $0.7 million, partially offset by lower mortgage banking income of $0.2 million.

Other operating expense totaled $46.7 million for the third quarter of 2024, compared to $41.2 million in the previous quarter and $39.6 million in the year-ago quarter. The higher other operating expense was primarily due to the aforementioned $3.1 million in expenses related to a strategic opportunity (included in other), higher salaries and employee benefits of $1.1 million, and higher directors' deferred compensation plan expenses of $1.0 million (included in other).

The efficiency ratio was 70.12% for the third quarter of 2024, compared to 64.26% in the previous quarter and 63.91% in the year-ago quarter. Excluding the aforementioned expenses related to a strategic opportunity, the adjusted efficiency ratio (non-GAAP) for the third quarter of 2024 was 65.51%.

The effective tax rate was 22.0% for the third quarter of 2024, compared to 23.4% in the previous quarter and 24.9% in the year-ago quarter. The decrease in the effective tax rate was primarily due to higher tax-exempt income from bank-owned life insurance and additional tax credits recognized.

Balance Sheet Highlights

Total assets of $7.42 billion at September 30, 2024 increased by $28.5 million, or 0.4% from $7.39 billion at June 30, 2024, and decreased by $222.5 million, or 2.9% from $7.64 billion at September 30, 2023. The Company had $326.6 million in cash on its balance sheet and $2.55 billion in total other liquidity sources, including available borrowing capacity and unpledged investment securities at September 30, 2024. Total available sources of liquidity as a percentage of uninsured and uncollateralized deposits was 118% at September 30, 2024, compared to 121% at June 30, 2024 and 122% at September 30, 2023. During the third quarter of 2024, excess balance sheet liquidity was used to pay off $69.1 million in higher cost government time deposits.

Total loans, net of deferred fees and costs, of $5.34 billion at September 30, 2024 decreased by $41.0 million, or 0.8% from $5.38 billion at June 30, 2024, and decreased by $166.1 million, or 3.0% from $5.51 billion at September 30, 2023. Average yields earned on loans during the third quarter of 2024 was 4.89%, compared to 4.80% in the previous quarter and 4.49% in the year-ago quarter.

Total deposits of $6.58 billion at September 30, 2024 increased by $0.6 million or 0.01% from $6.58 billion at June 30, 2024, and decreased by $291.7 million, or 4.2% from $6.87 billion at September 30, 2023. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.97 billion at September 30, 2024, and increased by $53.9 million, or 0.9% from $5.91 billion at June 30, 2024. Average rates paid on total deposits during the third quarter of 2024 was 1.32%, compared to 1.33% in the previous quarter and 1.07% in the year-ago quarter. FDIC-insured or fully collateralized deposits represented approximately 63% of total deposits at September 30, 2024, compared to 64% at June 30, 2024 and 65% at September 30, 2023.

Asset Quality

Nonperforming assets totaled $11.6 million, or 0.16% of total assets at September 30, 2024, compared to $10.3 million, or 0.14% of total assets at June 30, 2024 and $6.7 million, or 0.09% of total assets at September 30, 2023. The increase in nonperforming assets was primarily due to the addition of residential mortgage loans totaling $2.2 million which were well-collateralized with strong loan-to-value ratios.

Net charge-offs totaled $3.6 million in the third quarter of 2024, compared to net charge-offs of $3.8 million in the previous quarter, and net charge-offs of $3.9 million in the year-ago quarter. Annualized net charge-offs as a percentage of average loans was 0.27%, 0.28% and 0.28% during the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

The allowance for credit losses, as a percentage of total loans was 1.15% at September 30, 2024, compared to 1.16% at June 30, 2024, and 1.17% at September 30, 2023.

Capital

Total shareholders' equity was $543.7 million at September 30, 2024, compared to $518.6 million and $468.6 million at June 30, 2024 and September 30, 2023, respectively.

During the third quarter of 2024, the Company did not repurchase any shares of common stock. As of September 30, 2024, $19.1 million in share repurchase authorization remained available under the Company's share repurchase program.

The Company's leverage, common equity tier 1, tier 1 risk-based capital, and total risk-based capital ratios were 9.5%, 12.1%, 13.1%, and 15.3%, respectively, at September 30, 2024, compared to 9.3%, 11.9%, 12.8%, and 15.1%, respectively, at June 30, 2024.

On October 29, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share on its outstanding common shares. The dividend will be payable on December 16, 2024 to shareholders of record at the close of business on November 29, 2024.

Conference Call

The Company's management will host a conference call today at 1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time) to discuss the quarterly results. Individuals are encouraged to listen to the live webcast of the presentation by visiting the investor relations page of the Company's website at http://ir.cpb.bank. Alternatively, investors may participate in the live call by dialing 1-800-715-9871 (conference ID: 6299769). A playback of the call will be available through November 29, 2024 by dialing 1-800-770-2030 (playback ID: 6299769) and on the Company's website. Information which may be discussed in the conference call is provided in an earnings supplement presentation on the Company's website at http://ir.cpb.bank.

About Central Pacific Financial Corp.

Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $7.42 billion in assets as of September 30, 2024. Central Pacific Bank, its primary subsidiary, operates 27 branches and 56 ATMs in the State of Hawaii. For additional information, please visit the Company's website at http://www.cpb.bank.

Equal Housing Lender

Member FDIC

NYSE Listed: CPF

Forward-Looking Statements

This document may contain forward-looking statements ("FLS") concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, payment or nonpayment of dividends, capital position, credit losses, net interest margin or other financial items; 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; statements of future economic performance including anticipated performance results from our business initiatives; or 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 FLS but are not the exclusive means of identifying such statements.

While we believe that our FLS 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, including, but not limited to: the effects of inflation and interest rate fluctuations; the adverse effects of recent bank failures and the potential impact of such developments on customer confidence, deposit behavior, liquidity and regulatory responses thereto; the adverse effects of the COVID-19 pandemic virus (and its variants) and other pandemic viruses on local, national and international economies, including, but not limited to, the adverse impact on tourism and construction in the State of Hawaii, our borrowers, customers, third-party contractors, vendors and employees, as well as the effects of government programs and initiatives in response thereto; supply chain disruptions; labor contract disputes and potential strikes; the increase in inventory or adverse conditions in the real estate market and deterioration in the construction industry; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; 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; deterioration or malaise in domestic economic conditions, including any destabilization in the financial industry and deterioration of the real estate market, as well as the impact of declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, changes in capital standards, other regulatory reform and federal and state legislation, including but not limited to regulations promulgated by the Consumer Financial Protection Bureau, government-sponsored enterprise reform, and any related rules and regulations which affect our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings and lawsuits we are or may become subject to, or regulatory or other governmental inquiries and proceedings and the resolution thereof; the results of regulatory examinations or reviews and the effect of, and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to, and the effect of any recurring or special FDIC assessments; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the PCAOB, the FASB and other accounting standard setters and the cost and resources required to implement such changes; the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; securities market and monetary fluctuations, including the impact resulting from the elimination of the LIBOR Index; negative trends in our market capitalization and adverse changes in the price of the Company's common stock; the effects of any potential or actual acquisitions or dispositions we may make or evaluate, and the related costs, including re-engagement in any potential acquisition process; political instability; acts of war or terrorism; changes in consumer spending, borrowings and savings habits; technological changes and developments; cybersecurity and data privacy breaches and the consequence therefrom; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; our ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures; changes in the competitive environment among financial holding companies and other financial service providers; our ability to successfully implement our initiatives to lower our efficiency ratio; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; our ability to successfully implement and achieve the objectives of our BaaS initiatives, including adoption of the initiatives by customers and risks faced by any of our bank collaborations including reputational and regulatory risk; and our success at managing the risks involved in the foregoing items.

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

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)																TABLE 1
	Three Months Ended															Nine Months Ended
(Dollars in thousands,	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Sep 30,
except for per share amounts)	2024			2024			2024			2023			2023			2024			2023
CONDENSED INCOME STATEMENT
Net interest income	$	53,851		$	51,921		$	50,187		$	51,142		$	51,928		$	155,959		$	158,858
Provision for credit losses		2,833			2,239			3,936			4,653			4,874			9,008			11,045
Total other operating income		12,734			12,121			11,244			15,172			10,047			36,099			31,491
Total other operating expense		46,687			41,151			40,576			42,522			39,611			128,414			121,621
Income tax expense		3,760			4,835			3,974			4,273			4,349			12,569			13,880
Net income		13,305			15,817			12,945			14,866			13,141			42,067			43,803
Basic earnings per share	$	0.49		$	0.58		$	0.48		$	0.55		$	0.49		$	1.55		$	1.62
Diluted earnings per share		0.49			0.58			0.48			0.55			0.49			1.55			1.62
Dividends declared per share		0.26			0.26			0.26			0.26			0.26			0.78			0.78

PERFORMANCE RATIOS
Return on average assets (ROA) [1]		0.72	%		0.86	%		0.70	%		0.79	%		0.70	%		0.76	%		0.78	%
Return on average shareholders' equity (ROE) [1]		10.02			12.42			10.33			12.55			10.95			10.91			12.33
Average shareholders' equity to average assets		7.23			6.94			6.73			6.32			6.39			6.97			6.34
Efficiency ratio [2]		70.12			64.26			66.05			64.12			63.91			66.86			63.89
Net interest margin (NIM) [1]		3.07			2.97			2.83			2.84			2.88			2.95			2.98
Dividend payout ratio [3]		53.06			44.83			54.17			47.27			53.06			50.32			48.15

SELECTED AVERAGE BALANCES
Average loans, including loans held for sale	$	5,330,810		$	5,385,829		$	5,400,558		$	5,458,245		$	5,507,248		$	5,372,247		$	5,525,476
Average interest-earning assets		7,022,910			7,032,515			7,140,264			7,208,613			7,199,866			7,065,075			7,156,270
Average assets		7,347,403			7,338,714			7,449,661			7,498,097			7,510,537			7,378,479			7,472,890
Average deposits		6,535,422			6,542,767			6,659,812			6,730,883			6,738,071			6,579,174			6,689,762
Average interest-bearing liabilities		4,904,460			4,910,998			5,009,542			5,023,321			4,999,820			4,941,530			4,910,190
Average shareholders' equity		530,928			509,507			501,120			473,708			480,118			513,914			473,856

[1]		ROA and ROE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).
[2]		Efficiency ratio is defined as total other operating expense divided by total revenue (net interest income and total other operating income).
[3]		Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)			TABLE 1 (CONTINUED)
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,
	2024		2024		2024		2023		2023
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio	9.5	%	9.3	%	9.0	%	8.8	%	8.7	%
Common equity tier 1 capital ratio	12.1		11.9		11.6		11.4		11.0
Tier 1 risk-based capital ratio	13.1		12.8		12.6		12.4		11.9
Total risk-based capital ratio	15.3		15.1		14.8		14.6		14.1

Central Pacific Bank
Leverage ratio	9.8		9.6		9.4		9.2		9.1
Common equity tier 1 capital ratio	13.6		13.3		13.1		12.9		12.4
Tier 1 risk-based capital ratio	13.6		13.3		13.1		12.9		12.4
Total risk-based capital ratio	14.8		14.5		14.3		14.1		13.7

	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(dollars in thousands, except for per share amounts)	2024			2024			2024			2023			2023
BALANCE SHEET
Total loans, net of deferred fees and costs	$	5,342,609		$	5,383,644		$	5,401,417		$	5,438,982		$	5,508,710
Total assets		7,415,430			7,386,952			7,409,999			7,642,796			7,637,924
Total deposits		6,583,013			6,582,455			6,618,854			6,847,592			6,874,745
Long-term debt		156,284			156,223			156,163			156,102			156,041
Total shareholders' equity		543,725			518,647			507,203			503,815			468,598
Total shareholders' equity to total assets		7.33	%		7.02	%		6.84	%		6.59	%		6.14	%

ASSET QUALITY
Allowance for credit losses (ACL)	$	61,647		$	62,225		$	63,532		$	63,934		$	64,517
Nonaccrual loans		11,597			10,257			10,132			7,008			6,652
Non-performing assets (NPA)		11,597			10,257			10,132			7,008			6,652
Ratio of ACL to total loans		1.15	%		1.16	%		1.18	%		1.18	%		1.17	%
Ratio of NPA to total assets		0.16	%		0.14	%		0.14	%		0.09	%		0.09	%

PER SHARE OF COMMON STOCK OUTSTANDING
Book value per common share	$	20.09		$	19.16		$	18.76		$	18.63		$	17.33
Closing market price per common share		29.51			21.20			19.75			19.68			16.68

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)	TABLE 2
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(Dollars in thousands, except share data)	2024			2024			2024			2023			2023
ASSETS
Cash and due from financial institutions	$	100,064		$	103,829		$	98,410		$	116,181		$	108,818
Interest-bearing deposits in other financial institutions		226,505			195,062			214,472			406,256			329,913
Investment securities:
Available-for-sale debt securities, at fair value		723,453			676,719			660,833			647,210			625,253
Held-to-maturity debt securities, at amortized cost; fair value of: $546,990 at September 30, 2024, $528,088 at June 30, 2024, $541,685 at March 31, 2024, $565,178 at December 31, 2023, and $531,887 at September 30, 2023		606,117			615,867			624,948			632,338			640,053
Total investment securities		1,329,570			1,292,586			1,285,781			1,279,548			1,265,306
Loans held for sale		1,609			3,950			755			1,778			—
Loans, net of deferred fees and costs		5,342,609			5,383,644			5,401,417			5,438,982			5,508,710
Less: allowance for credit losses		(61,647	)		(62,225	)		(63,532	)		(63,934	)		(64,517	)
Loans, net of allowance for credit losses		5,280,962			5,321,419			5,337,885			5,375,048			5,444,193
Premises and equipment, net		104,575			100,646			97,688			96,184			97,378
Accrued interest receivable		23,942			23,184			21,957			21,511			21,529
Investment in unconsolidated entities		54,836			40,155			40,780			41,546			42,523
Mortgage servicing rights		8,513			8,636			8,599			8,696			8,797
Bank-owned life insurance		175,914			173,716			172,228			170,706			168,543
Federal Home Loan Bank of Des Moines ("FHLB") stock		6,929			6,925			6,921			6,793			10,995
Right-of-use lease assets		32,192			32,081			32,079			29,720			32,294
Other assets		69,819			84,763			92,444			88,829			107,635
Total assets	$	7,415,430		$	7,386,952		$	7,409,999		$	7,642,796		$	7,637,924
LIABILITIES
Deposits:
Noninterest-bearing demand	$	1,838,009		$	1,847,173		$	1,848,554		$	1,913,379		$	1,969,523
Interest-bearing demand		1,255,382			1,283,669			1,290,321			1,329,189			1,345,843
Savings and money market		2,336,323			2,234,111			2,211,966			2,209,733			2,209,550
Time		1,153,299			1,217,502			1,268,013			1,395,291			1,349,829
Total deposits		6,583,013			6,582,455			6,618,854			6,847,592			6,874,745
Long-term debt, net of unamortized debt issuance costs of: $263 at September 30, 2024, $324 at June 30, 2024, $384 at March 31, 2024, $445 at December 31, 2023, and $506 at September 30, 2023		156,284			156,223			156,163			156,102			156,041
Lease liabilities		33,807			33,422			33,169			30,634			33,186
Accrued interest payable		12,980			14,998			16,654			18,948			16,752
Other liabilities		85,621			81,207			77,956			85,705			88,602
Total liabilities		6,871,705			6,868,305			6,902,796			7,138,981			7,169,326
EQUITY
Shareholders' equity:
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023		—			—			—			—			—
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 27,064,501 at September 30, 2024, 27,063,644 at June 30, 2024, 27,042,326 at March 31, 2024, 27,045,033 at December 31, 2023, and 27,043,169 at September 30, 2023		404,494			404,494			404,494			405,439			405,439
Additional paid-in capital		104,794			104,161			103,130			102,982			102,550
Retained earnings		138,951			132,683			123,902			117,990			110,156
Accumulated other comprehensive loss		(104,514	)		(122,691	)		(124,323	)		(122,596	)		(149,547	)
Total shareholders' equity		543,725			518,647			507,203			503,815			468,598
Total liabilities and equity	$	7,415,430		$	7,386,952		$	7,409,999		$	7,642,796		$	7,637,924

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)	TABLE 3
	Three Months Ended												Nine Months Ended
	Sep 30,		Jun 30,		Mar 31,		Dec 31,			Sep 30,			Sep 30,
(Dollars in thousands, except per share data)	2024		2024		2024		2023			2023			2024		2023
Interest income:
Interest and fees on loans	$	65,469	$	64,422	$	62,819	$	62,429		$	62,162		$	192,710	$	180,886
Interest and dividends on investment securities:
Taxable investment securities		8,975		8,466		7,211		7,292			7,016			24,652		21,497
Tax-exempt investment securities		551		598		655		686			709			1,804		2,226
Interest on deposits in other financial institutions		2,775		2,203		3,611		3,597			2,412			8,589		3,566
Dividend income on FHLB stock		127		151		106		109			113			384		369
Total interest income		77,897		75,840		74,402		74,113			72,412			228,139		208,544
Interest expense:
Interest on deposits:
Interest-bearing demand		484		490		499		467			460			1,473		1,234
Savings and money market		10,235		8,977		8,443		7,459			6,464			27,655		14,520
Time		11,040		12,173		12,990		12,741			11,268			36,203		26,464
Interest on short-term borrowings		—		1		—		—			—			1		1,139
Interest on long-term debt		2,287		2,278		2,283		2,304			2,292			6,848		6,329
Total interest expense		24,046		23,919		24,215		22,971			20,484			72,180		49,686
Net interest income		53,851		51,921		50,187		51,142			51,928			155,959		158,858
Provision for credit losses		2,833		2,239		3,936		4,653			4,874			9,008		11,045
Net interest income after provision for credit losses		51,018		49,682		46,251		46,489			47,054			146,951		147,813
Other operating income:
Mortgage banking income		822		1,040		613		611			765			2,475		1,981
Service charges on deposit accounts		2,167		2,135		2,103		2,312			2,193			6,405		6,441
Other service charges and fees		5,947		5,869		5,261		5,349			5,203			17,077		15,182
Income from fiduciary activities		1,447		1,449		1,435		1,272			1,234			4,331		3,623
Income from bank-owned life insurance		1,897		1,234		1,522		2,015			379			4,653		2,855
Net loss on sales of investment securities		—		—		—		(1,939	)		(135	)		—		(135	)
Other		454		394		310		5,552			408			1,158		1,544
Total other operating income		12,734		12,121		11,244		15,172			10,047			36,099		31,491
Other operating expense:
Salaries and employee benefits		22,299		21,246		20,735		20,164			19,015			64,280		61,886
Net occupancy		4,612		4,597		4,600		4,676			4,725			13,809

Central Pacific Financial Reports Third Quarter 2024 Earnings