Good afternoon, ladies and gentlemen. Thank you for standing by. And welcome to Central Pacific Financial Corporation Fourth Quarter 2008 Conference Call. During today’s presentation, all parties will in a listening-only mode. Following the presentation the conference will be open for questions. (Operator Instructions) This call is being recorded and will be available for replay shortly after its completion at the company’s website at www.centralpacificbank.com. I would now like to turn the conference over to Mr. David Morimoto, Senior Vice President of Investor Relations. Please go ahead, sir.

Okay. Thank you. Good morning, everyone. With us today are Ron Migita, Chairman, President and Chief Executive Officer; Dean Hirata, Vice Chairman and Chief Financial Officer; Blenn Fujimoto, Vice Chairman Hawaii Market; and Curtis Chinn, Executive Vice President and Chief Risk Officer. Today’s call will refer to a slide presentation that can be found on our investor relations page of our website at www.centralpacificbank.com. Ron and Dean will begin by reviewing our fourth quarter results, and then we’ll open the call to questions. During the course of today’s call management may make forward-looking statements, and while we believe these statements are based on reasonable assumption, they involve risks that may cause actual results to differ materially from those projected. For a complete discussion of the risk related to forward-looking statements, please see our earnings release issued this morning and our other recent documents filed with the SEC. And now I’ll turn the call over to Ron Migita.

Thank you, David and thank you all for joining us today to review Central Pacific Financial Corporation’s financial performance for the fourth quarter of 2008. I’ll be addressing some of the key highlights of our company and the marketplace, followed by our Chief Financial Officer, Dean Hirata, with the details of our fourth quarter financial results, and we will be very happy to answer any questions you may have at the end of our report. I would like to start by recognizing the tremendous effort put forth by all of our employees during these challenging times. They have individually and collectively demonstrated their dedication to the success of our company, which played a critical role in our fourth quarter results, and I am confident that their commitment will continue to drive the successful execution of our plans and strategies in the coming year. We are very pleased to have completed another profitable quarter with net income of $3.1 million or $0.11 per diluted share, for the quarter ended December 31, 2008. While the last two quarters of 2008 have been profitable, we still fully recognize the importance of carefully managing our business going forward in light of the meltdown in our financial industry. We are closely monitoring the nation and Hawaiian economic climate in order to continue to proactively navigate through these unprecedented times. Cost containment continues to be in the forefront of the day-to-day management of our operations, and without losing sight of our long-term goals. Beginning in 2008, voluntary reductions were made in Board and Executive compensation of 20% and 10% respectively. We have also re-evaluated our staffing model relative to our current situation, and we’ll be reducing our personnel costs by approximately 10% through a combination of selective restructuring in operations, including incentive plans and the elimination…

Thank you, Ron. Beginning on Slide 3, our net income during the fourth quarter of 2008, again, we posted a second consecutive quarter of profitability with net income of $3.1 million or $0.11 per diluted share. In addition to reporting our second consecutive profitable quarter, we also grew total deposits by $134.5 million, or 3.6% from September 30, 2008. I’ll provide further details about the composition of our deposit base later in my presentation. At December 31, 2008, we maintained our well capitalized designation for all regulatory capital ratios. As Ron previously mentioned, on January 9, 2009, we issued $135 million in senior preferred stock to the US Treasury in connection with our participation in the capital purchase program. Including the newly raced capital, on a pro forma basis as of December 31, 2008, the capital ratios were as follows. Tier one risk-based capital of 13.46%, total risk-based capital of 14.73%, and a leverage capital of 11.37%. Our allowance for loan and lease losses increased by almost $20 million, and the allowance as a percentage of total loans and leases stood at 2.97% at December 31, 2008, up from 2.46% at September 30, 2008. Related to the increase in the allowance per loan and lease losses, the current quarter included total credit costs of $30 million, comprised of a provision for loan and lease losses of $26.7 million, write downs of loans held for sale of $1.3 million, foreclosed asset expense of $700,000, and an increase in the reserve for unfunded commitments of $1.3 million. During the quarter, the Mainland loan portfolio decreased by $47 million due to loan pay downs, and stood at just over $1 billion or 26% of our total loan portfolio at December 31, 2008. I will discuss the breakdown of our loan portfolio in greater…

(Operator instructions) Our first question is from Joe Morford - RBC Capital Markets.

Hi, this is actually [Meg Keane] calling on Joe Morford’s team. We just wondering if you had a normalized run rate going forward for expenses?

Dean, that’s a question for you.

On a normalized basis, we anticipate a range of between $35 to $36 million.

Great and other than that, did you guys have MPA sales in the quarter? And if so, what sort of values were you looking at with those?

Could you repeat your question?

Sorry. We were also wondering if you had sales of MPAs in the quarter and what sort of values you saw with those.

Hi, this is Curtis Chinn. No, we had no loan sales in the quarter.

And are you guying looking for that going forward? Are there prospects of that?

We’ll look at that on a opportunistic basis, but we’re not planning any more bulk sales.

Our next question is from Bobby Bohlen - KBW.

On the deposits the growth looks fairly good and some of your reports from some of your local competitors also showed strong deposit growth. Is this net new accounts or are we seeing more balances, as even the consumer tries to get more liquid, maybe just some color on what we’re seeing going on with the deposits.

Thank you, Bobby. I’m going to ask Blenn Fujimoto to respond to your question here.

Hi, Bobby, this is Blenn Fujimoto. We actually saw a combination of new account growth as well as existing customers adding to their balances. We did launch a couple of new products during though quarter. Our Super Savings product, which is a promotional rate, 3%, we were able to gain some good new account growth in that area. This year we have had our Free-Plus checking account, which is still a premium rate on that, but we expect this product where they have to do 15 debit card transactions during the month to receive their premium rate. We believe this type of product will bring a new core, people who use this with our primary bank, so we have seen some good growth in that during the quarter also. So an answer to your question here, we have seen growth in both the business as well as consumer in this past quarter. And we expect that probably to continue through this first quarter also.

I also have another question. There was recently an article I believe, in one of the local papers talking about the refinance activity going on in the island. And you guys are one of the larger players in the mortgage market. I was wondering if you could give us a little bit of color on what we’re seeing with the refinance market.

Yeah, we have had some significant growth in refinances. We’re probably looking at about triple the volume that we normally do in terms of our run rate. We expect that to continue probably for the next 90 days, and probably that will drop back to more normalized levels at that point.

And with the refinance, are you looking, you did say that you were only doing originations of salable mortgages. Would you guys be looking to sell more of those mortgages or keep them on balance sheet at this time?

We’re looking to sell almost 100% of those mortgages.

Our next question comes from Dan Bandi - Integrity Asset Management.

Thanks for taking my call. I was wondering if you guys could on page 5 of the slide deck, would you be able to go down those categories for us, and just give us the 60 to 90-day delinquencies and the change since last quarter for those categories or for some grouping of those categories?

Yeah, I can take that. I have aggregate numbers of the delinquencies not including the non-performers, at quarter-end we were at about $24 million or 59 basis points. Prior quarter we were at $23 million and 57 basis points in aggregate.

(Operator instructions) I am show nothing further questions at this time.

Okay. Well thank you very much for your questions this morning, and for participating in our earnings call. I believe there are few businesses, banking or otherwise that are not anxious to close the books on 2008. However, on behalf of the management team at Central Pacific Bank, I can say with confidence that through managing the challenges, we experienced this last year, we created a much stronger, wiser, and tougher management deem than we have ever had. I can also say with confidence that we all look forward to 2009 with great anticipation of creating an even stronger bank for our shareholders, customers, employees, and the communities we serve and support. Thank you very much, and have a nice day. Bye-bye.

That does conclude today’s call. You may now disconnect your line.