Central Pacific Bank’s earnings plunged 65 percent in the fourth quarter primarily due to taking a one-time charge of $7.4 million linked to the new tax law.

Both mainland and Hawaii banks have been reporting lower earnings — or in some cases losses — in the fourth quarter related to the Tax Cuts and Jobs Act signed into law by President Donald Trump in December.

Central Pacific’s additional noncash expense was caused by accounting reductions on the value of future tax credits the bank had to take to bring it into compliance with the new lower corporate tax rate.

Eventually the tax law should benefit banks and other companies because it cuts the top federal tax rate for corporations to 21 percent from 35 percent.

“While we recorded a one-time adjustment in the valuation of our net deferred tax assets in the quarter, we look forward to the positive impact of a reduced corporate income tax rate in the coming year,” Central Pacific President and CEO Catherine Ngo said.

Central Pacific Financial Corp., parent of the state’s fourth-largest bank, said its net income fell to $4.3 million, or 14 cents a share, from $12.2 million, or 39 cents a share, in the year-ago quarter. Excluding the charge, net income was $11.7 million, or 39 cents a share.

The bank expensed about $800,000 for the $1,000 holiday bonuses paid to nonexecutive employees. In addition, Central Pacific said increasing its minimum wage to $15.25 and adjusting pay scales for step-up positions could cost it about $800,000 for this year.

For 2017, Central Pacific’s earnings fell 12.3 percent to $41.2 million, or $1.34 a share, from $47 million, or $1.60 a share. Excluding the charge, net income was $48.6 million, or $1.59 a share.

Loans rose 7 percent to $3.78 billion, deposits increased 7.6 percent to $4.96 billion and assets gained 4.4 percent to $5.62 billion.

The bank also raised its dividend by a penny to 19 cents a share to be payable March 15 to shareholders of record as of Feb. 28.