Good afternoon, ladies and gentlemen. Welcome to the Central Pacific Financial Corp. second quarter 2008 conference call. During today's presentation, all parties will be in listen-only mode. Following the presentation, the conference will be open for questions. (Operator instructions) This conference is being recorded, and will be available for replay shortly after its completion on the company's website at www.centralpacificbank.com. I'd now like to turn the call over to Mr. David Morimoto, Senior Vice President, Investor Relations. Please go ahead, sir.

Thanks, Andrea. And thank you everyone for joining us this morning. With us today from management are Clint Arnoldus, President and Chief Executive Officer, Dean Hirata, Vice Chairman and Chief Financial Officer, and Curtis Chinn, Executive Vice President and Chief Risk Officer. Today's call will refer to a power point presentation that can be found on our Investor Relations Web site at https://investor.centralpacificbank.com. Clint and Dean will begin by reviewing our second quarter results, and then we will open the call up for questions. During the course of today's call, management may make forward-looking statements with respect to the financial conditions, results of operations, and the business of Central Pacific Financial Corp. These forward-looking statements involve risks that may cause actual results to differ materially from those projected. For a complete discussion of the risks related to forward-looking statements, please see our earnings release issued this morning and our other recent documents filed with the SEC. At this time, I would like to turn the call over to Clint Arnoldus.

Thanks very much, David, and thank you all for joining us today to review Central Pacific Financial Corp's financial performance for the quarter ended June 30th, 2008. I will be addressing the highlights of our company, and the marketplace, including updating you on the progress we've made in aggressively downsizing our California loan portfolio, and strengthening our capital position. Our Chief Financial Officer, Dean Hirata, will follow me with a detailed financial report of our second quarter results, including a discussion on the California residential construction loan portfolio. And after we have completed our remarks, we would be happy to take your questions. But before we proceed, I would like to take this time to introduce our new President and CEO to you. This morning we announced the appointment of Ronald K. Migita as President and Chief Executive Officer of Central Pacific Financial Corp. and Central Pacific Bank. Ron is the right leader for the job at the right time. He brings over 40 years of banking experience to the table. He has an in-depth understanding of the Hawaii market. And he knows Central Pacific Bank's customers, employees, and shareholders. Ron, would you like to say a few words?

Yes. Good morning and thank you, Clint. It is indeed an honor and privilege to be appointed as President and CEO of Central Pacific Financial Corporation and Central Pacific Bank. Central Pacific Bank is a solid company with strong roots in Hawaii, and I am excited about leading this dedicated hardworking team in my new capacity. I would also like to take this time to thank Clint for his hard work over the past six years. As you know, Clint announced his retirement in March of this year. As you will hear, these are challenging times for our bank, and the entire financial industry. But I have seen difficult times before, and met every challenge head on. I believe that my banking experience, my deep knowledge of the Hawaii market, and my intimate understanding of our stakeholders will allow me to move quickly and decisively to tackle the charges we currently face. I am confident that our team at Central Pacific Bank can successfully overcome these challenges, and continue to serve our customers and our shareholders. Thanks, Clint.

Thank you very much, Ron. And I agree with you in over 30 years of banking, I have never seen a marketplace that's more challenging than the one we find ourselves in today. Central Pacific Financial Corp like many financial institutions across the country continues to be faced with formidable challenges stemming from problems in the national housing market and the ripple effect of the subprime lending crisis. And our quarterly results reflect this. Our California residential construction lending businesses continue to be impacted by deterioration in credit trends during the second quarter of 2008. However, as we stated in our first quarter earnings call, our team is executing on our aggressive plan to reduce our risk in the California residential construction loan portfolio. As you will see, we have taken significant steps to reduce our exposure to these problem loans, and enhanced our risk management. We continue to address the impact of the weak California residential construction market on our loan portfolio which resulted in significant write-downs with higher credit costs this quarter. In meeting these challenging times, we are focused on reducing our credit risk, and strengthening our capital ratios to better position us throughout this economic cycle. We continue to be well-capitalized as of June 30th 2008 with tier one risk-based capital, total risk-based capital, and leverage capital ratios of 9.83, 11.09 and 8.21% respectively, all of which are above the regulatory requirements of 6, 10, and 5%. I want to underscore that our core operations in Hawaii remain solid with strong operating fundamentals. While Hawaii's economies begun to slow we remain encouraged by the long-term outlook for our core Hawaii franchise. There are no easy answers here, but I do want to assure all of our stakeholders that we are committed to facing every single one…

Thank you, Clint. My remarks will cover the consolidated financial results of Central Pacific Financial Corp. and subsidiaries for the second quarter 2008. And I will be going over the power point presentation that you should all have as part of my review of the financial results. So turning to slide #3, starting with the highlights of our second quarter as well as a significant event that occurred in the third quarter, we did maintain a well-capitalized regulatory designation as of June 30, 2008. With our tier one total risk base and leverage capital ratios of 9.83%, 11.09% and 8.21% respectively, and this is despite the operating loss that we've recognized during the second quarter. Our net revenues were $65.4 million, excluding the effects of the reversal of interest of $2.1 million related to certain nonaccrual loans that occurred during the second quarter, an increase of 1.5% compared to net revenues of $64.4 million in the second quarter of 2007. The increase was comprised of net interest income which increased by about $600,000 and noninterest income which was up $400,000. We opened a record number of deposit accounts which resulted from the success of our deposit campaigns. Overall, there was a 53% lift in consumer demand deposit account openings as compared to the first quarter. The allowance for loan and lease losses as a percentage of total loans and leases increased to 2.11% at June 30, compared to 1.31% at June 30, 2007. Credit costs of $116.1 million were comprised of a provision for loan and lease losses of $87.8 million, write-downs of loans held for sale of $22.4 million, foreclosed asset expenses of $4 million, and an increase to the reserve for unfunded commitments of $1.9 million. Of this total amount, $112 million or 96.5% was directly attributable to…

(Operator instructions) Our first question comes from Brett Rabatin of FTN Midwest. Please go ahead. Brett Rabatin – FTN Midwest Research: Hello everyone. Wanted to first ask a housekeeping issue, what was at the end of the quarter the total risk-based assets and total risk-based capital on a dollar basis?

Brett Rabatin – FTN Midwest Research: Okay. And why are you looking for that, the unfunded commitment growth of 6.5 million this quarter, I am curious to hear some thoughts on – talk about the Mainland portfolio in a minute, is the pipeline of loans growing and assuming aside from whatever sales you do in the second half of the year is the loan pipeline growing relative to where it was a quarter or two ago I guess is my question?

Brett, this is Curtis Chinn. The answer to that question on the loan pipeline is no, it's not growing. Brett Rabatin – FTN Midwest Research: Okay. So why did the unfunded commitment, was there a catch-up?

If you recall, last quarter, we actually had decrease in reserves for unfunded commitments. And what we do when we classify a loan, a substandard and that we have unfunded commitments, we treat that unfunded commitment as if it was fully funded so we apply the same loss factors to the unfunded as we do the funding, so as loans pay off or we decrease commitments, the numbers go down. And that's what happened in the first quarter, second quarter. We have a couple loans, the ones that we put on nonperforming in Hawaii where if you had unfunded commitments, again, we have to have that treatment. So that's what caused the up and down movement over the last two quarters. Brett Rabatin – FTN Midwest Research: Okay. And obviously, very aggressive with the construction portfolio in California with capital ratios where they are, I am assuming that there is a strong consideration for a bulk sale of CRE loans in the second half?

At this point we are not anticipating any further bulk loan sales. We will however consider individual transactions as they make sense for the bank. Brett Rabatin – FTN Midwest Research: Okay. Well, just and disappointing question, will balance sheet – will the loan portfolio aside from the transaction that you already accomplished prior to quarter-end shrink?

I'm sorry. Brett Rabatin – FTN Midwest Research: The loan portfolio aside from the sale of loans that you indicated you've already completed, will the loan portfolio shrink or are you actually thinking the portfolio will grow?

No, we think that the loan portfolio will shrink rolling forward. Brett Rabatin – FTN Midwest Research: Okay. And Just given the credit quality you've experienced in the construction portfolio, the obvious question is as investors are probably thinking about the CRE portfolio with a continued soft economy, and whether or not the CRE portfolio is any better than the construction portfolio? So I think you have obviously been very aggressive with the construction book. But I guess the question is, how aggressive have you been with the CRE book, and how do we know that portfolio is indeed not going to weaken in the next few quarters as the construction portfolio has?

Well, let me (inaudible) both Mainland and Hawaii. Mainland, we reviewed every loan in the portfolio. We are much more comfortable with the CRE portion of that portfolio. As Dean mentioned, we are doing that slide (inaudible) very season and that portfolio is much more geographically diverse. We don't have the large concentration in areas like Inland Empire and Sacramento that we did with the residential construction. If you recall, for example, in the residential portfolio at one point one-third of that exposure was in the Inland Empire. We don't have anywhere near those kind of concentrations in the CRE portfolio plus we still have good DSEs. So, while I agree with you that the economy will slow and we will have some impact, we are much more comfortable that we will not have anywhere near the kind of experience that we have had with residential. Brett Rabatin – FTN Midwest Research: Okay. And then, on capital as you didn't – obviously indicated the dividend cut, but haven't talked about what you might do going forward. It sounds like you don't have any planned actions to either look to raise capital or change the dividend from the current quarter as well?

Brett, that's an issue that we continue to evaluate. As we said today, we are in a challenging environment for banks, and we entered today's environment with strong capital ratios and earnings, which has allowed us to aggressively write-down and sell these underperforming assets in California that we talked about. And we feel very good that we remain well-capitalized even with that aggressive action, but we are going to continue to take necessary and appropriate steps to maintain that well-capitalized position. And we believe in times like this, all banks need to be focused on capital, not just to protect ourselves against unexpected problems, but also we have got the capability to serve our clients banking needs. So, this management team and the board of directors will continue to closely evaluate our capital levels, and we are going to remain at a well-capitalized position, so. Brett Rabatin – FTN Midwest Research: Okay. And then will there be that the – the level of operating expenses going forward, if we look at kind of a core rate of 40 million in 2Q, or one, is that what you are looking at? And the two is will there be any nonrecurring items in the third quarter i.e. for yourself with your departure, or any other nonrecurring items?

Brett on the run rate we are looking at I mean $34 to $35 million for the quarter. Brett Rabatin – FTN Midwest Research: Okay. Maybe we can follow-up offline after that – about that. And then what was the….

I have the other numbers for you. So on the total risk-based capital ratio, the 11.09%, total capital was $527,964,000 of a total risk weighted asset base of $4.8 billion. Brett Rabatin – FTN Midwest Research: Okay. And is that – what is the bank – much lower than that?

Yes. The bank is at 10.7%, and that's off of a capital base of $506 million as compared to risk weighted assets of $4.7 million. Brett Rabatin – FTN Midwest Research: Okay. Thanks.

Thank you. Our next question comes from Fred Cannon of KBW. Please go ahead. Fred Cannon – KBW: Hi. I was just wanted to look at the California residential. Am I reading nine and ten, correct that a year ago you guys had $330 million of California residential, and I guess only about 16 million is now pass rated, so essentially more than 95% of those portfolios have been impaired in one way or the other?

Correct. Fred Cannon – KBW: And with this – and do you believe that's reflective of simply the market or do you believe it's reflective of some flaw in the underwriting and loan production at CPF?

I really think it's reflective of the market. Fred Cannon – KBW: Okay. So, then you would think that we should think about California construction loans generally having 95% being impaired?

Not all construction loans. I think in residential because the meltdown in residential has been pretty severe as you know. Fred Cannon – KBW: Of residential construction?

Yes. Fred Cannon – KBW: Okay. And then this portfolio was legacy City Bank or legacy Central Pacific highest regard?

It started with City Bank, but we continue to grow at post-merger on a combined basis. Fred Cannon – KBW: Okay. And given that it came from City Bank, I was wondering if Mr. Migita could comment on the kind of the development of that portfolio, the history of it, maybe his thoughts about what went wrong there or any thoughts he has?

You know, as far as those loans are concerned, when we initially opened our LPOs in California, we had hired a team of account officers, and over the past four years, number of the team members had left the bank. I am talking about the Central Pacific Bank, and I have to say that you know, I think that had some impact upon the oversight of the portfolio. Fred Cannon – KBW: And do you feel that you have the right oversight now on a go-forward basis?

I believe so, yes. Fred Cannon – KBW: Thank you.

Thank you. Our next question comes from Joe Morford of RBC Capital Markets. Please go ahead. Dave King – RBC Capital Markets: Hi, it's actually Dave King for Joe. First on the margin. I believe you said it should improve given the risk exposure to the mainland. Is that just assuming less interest reversals, so an improvement from the 397 level? Is that an improvement off the core margin of 13?

Yes. It's a combination of that along with deleveraging the balance sheet. So we expect the margin to be in the range of 4.1 to 4.2% going forward. Dave King – RBC Capital Markets: Okay. That's helpful. And then second for the loans you sold in July, it looks like those are sold for about $0.30 on dollar, is that correct? Maybe a little less than $0.30 on the dollar?

The pool sale against the original note value was roughly $0.37 on the dollar based on the carrying value at the end of the first quarter was about $0.42 I believe. Dave King – RBC Capital Markets: Okay. Thanks very much.

Our next question is from Aaron Deer of Sandler O'Neill. Please go ahead. Aaron Deer – Sandler O’Neill & Partners:

You're right. The markets in California are slowing, and we have seen slowdowns in absorption, but our projects still are moving forward. On the CRE side, we really have not experienced big decreases in occupancy on our properties. Aaron Deer – Sandler O’Neill & Partners: With the commercial construction though, are the developers getting things filled up as they are getting things completed or in advance of completion? How is that performing?

They have been able to continue to prelease. It's slower this year than it has been in prior years. But they are still able to attract tenants. They are still negotiating leases and LOIs with prospective tenants. It is slower though. Aaron Deer – Sandler O’Neill & Partners: Okay. Thank you.

Thank you. Our next question comes from Brian Hagler of Kennedy Capital. Please go ahead. Brian Hagler – Kennedy Capital: Good afternoon. Just I had a couple questions. First, I appreciate of the details you guys gave. Dean, I guess my first question is I think you mentioned that you sold 14 out of your 21 nonperforming Mainland residential loans, with the remaining 7 written down to, I believe you said 35% of original value, or something like that. Any reason why you didn't sell them all?

Brian, this is Curtis Chinn. As we evaluated our portfolio, as there were certain loans that we felt that the better strategy was to in certain cases build out inventory that had started, and then sell through and sell remnant lots. So, some of the loans that we retained are fall into that category. A few others were very problematic. So, we thought it would be better to take a longer term view with those assets, but we did still write those down to our view fair value. And that's really taking the current appraisals and providing additional discounts based on the data we have from the pool sale, and information we have from other banks as to their experiences as well. Brian Hagler – Kennedy Capital: So, it sounds like the ones that were not sold as they get maybe a little more developed, you would potentially consider a sale at that point?

We might. Again, it is really a function of, if somebody is interested in buying it, what's the price and how's that compare to the value we are holding it at the time? Brian Hagler – Kennedy Capital: Right. Okay. And then when Dean was running through the various segments of the remaining portfolio of the 102 million, I believe, I think he mentioned that there was, for example, pending loan sales on a couple loans in Fresno, and then he may have mentioned a few others, but can you just tell us what kind of the aggregate amount of potential loan sales or pending loan sales there are on that portfolio?

Hang on one second. We potentially have 25 to 32 million in possible loan sales at this point on that portfolio. We are also expecting paydowns in the $5 to $8 million range over the next few quarters just from normal repayment. Brian Hagler – Kennedy Capital: Okay. And last question if you were successful in moving 25 to 32 million of those assets, what percent of the 22 million specific reserve would go with that, or would that still remain for the remaining credits?

The specific reserves that we have attached with those assets I would keep in the loan loss reserve so it would be available for other assets. Brian Hagler – Kennedy Capital: So, there's none of that specific reserved assigned to the 25 to 30 that you're trying to sell?

Yes, there are specific reserves allocated to those specific loans. Brian Hagler – Kennedy Capital: Do you know how much of the 22 is assigned to those, by any chance?

That is about 7 million. Brian Hagler – Kennedy Capital: Okay. Thank you.

Thank you. Our next question comes from Brett Rabatin of FTN Midwest. Please go ahead. Brett Rabatin – FTN Midwest Research: Hi, I just want to follow-up on – early in the call you were talking about the growth in the deposit accounts and it sound like there was some gross growth in deposit accounts. So I was wondering if you had any data on what the net account growth was this quarter, and just what you are seeing from a competitive perspective. I know one of your competitors has come out with a new product on the checking side.

Brett, like I mentioned in the call, during the quarter, we did see a 53% lift in our new account openings as compared to the first quarter. We have been running a couple campaigns, again tied to bringing in our – again, we have talked previously about our exceptional account, which ties a money market with a checking account. We have had some success in bringing in new accounts with that campaign. And then we have also had a CD promotion where we've been able to bring in some deposits from some of our retail customers. Brett Rabatin – FTN Midwest Research: Okay. But no comparisons year-over-year or quarter-to-quarter on net account growth?

Again, the growth during the quarter was about $140 million. And of that $40 million was related to core deposit growth. Brett Rabatin – FTN Midwest Research: Okay. All right. And then I was trying to keep up with notes, but there were some comments on the branches on Hawaii, and I didn't quite understand, maybe I didn't catch it, if there was going to be any expansion or atrophy in the branch profile in the next couple of quarters?

In the next couple of quarters, we have an ongoing program of evaluating each of our branches on a separate – as a separate business unit. And we continue to look at that very stringently as part of a regular review process that we have. We do have plans in place to improve some of our existing branches. We still have two we are going to consolidate from the merger that we just weren't able to get a site for until recently. And that's – and the next two quarters, things don't move real quickly here when you get branch projects announced, so, we don't expect to see anything in the next two quarters in that regard. But, it is something we're looking at on a long-term basis, continual process. Brett Rabatin – FTN Midwest Research: Okay. Great. Thank you.

Thank you. Our next question comes from Brian Roman of Robeco Investment Management. Please go ahead. Brian Roman – Robeco Investment Management: Yes, hi. Thanks for taking my questions. Couple of questions. Could you talk about your local economy in Hawaii? You referenced there has been a slowdown, and also talk about housing prices in Hawaii? And I have got more questions.

Okay. This is Curtis Chinn. Yes. There has been a slowdown in the economy, it's tied to, but I think you're all aware we've had two airlines go out of business that had airlift from Mainland to Hawaii so that has affected tourism plus the price of oil affecting air fare has resulted in a slowdown of tourism. So we are seeing a slowdown into our general economy. Brian Roman – Robeco Investment Management: What's the most recent number on slowdown in tourism? Don't they or somebody put down a number for visits or something like that?

I am sorry.

It's down I believe 14.2% is the last number we have. Brian Roman – Robeco Investment Management: Is that year-to-date?

Year-over-year. Brian Roman – Robeco Investment Management: Yes. Okay. Great. Thanks. Home prices in Hawaii, did they have a significant run up in the last 5 to 7 years sort of comparable to the Mainland?

Yes. There has been a run up in the last five years in home prices in Hawaii. I think that there is a distinct difference. Some of the run up on the Mainland quite frankly was due to speculation, and a lot of the subprime lending, in particular, Inland Empire, Sacramento, Central Valley, California, Arizona, Florida, and Las Vegas. In Hawaii, I think a lot of the increase in price really have to do with basic supply/demand factors as the 1990s were a very, very flat decade for Hawaii in terms of real estate prices, so you have a lot of pent-up demand that really came online starting around '03 and that helped increase prices plus historically. Hawaii is particularly single family residential has been an undersupplied market. There is always a shortage of housing particularly on the island of Oahu. So even though the run up has been similar, the factors that lead to that have been quite different. Brian Roman – Robeco Investment Management: Okay. Now let's see. I am looking at the slide deck here. You used a concept on page 4 of normalized credit costs. What's normal?

Yes. On slide 4, we talked about here were with respect to the credit costs and coming down to the $15.2 million of normalized net income, what we excluded were the credit costs related to the Mainland of $112 million. You start with the reported net loss, you exclude the goodwill impairment, you then exclude the Mainland credit costs, and then you come out with the $15.2 million. Brian Roman – Robeco Investment Management: So, you are saying that 4.123 does not represent a percentage, it's just excluding the other numbers?

Correct. Brian Roman – Robeco Investment Management: Okay.

Those credit costs relate to Hawaii. Brian Roman – Robeco Investment Management: Fine. And then you have I think on page 5, I think it's sort of asked already, but what's a normalized net interest margin? How do you normalize a net interest margin?

Okay. If you start with the 3.97% which was the margin for the second quarter, if you normalize it for the interest reversals of $2.1 million for those loans that replaced on nonaccrual status, adding back that interest, you come out with a normalized margin of 4.13%. Brian Roman – Robeco Investment Management: So do you think that is a workable number for all other things being equal obviously changes in interest rate. Is that workable for the second half of '08?

Yes, again, we expect the margin to be somewhere in the range of 4.1 to 4.2% going forward. Brian Roman – Robeco Investment Management: Couple more questions. Page – it is detail is amazing. Page 8, if you look at nonperformers in Hawaii that went from 40 basis points to 110 basis point, the construction portfolio went from 40 to 310. Can you just talk about what's going on there? Obviously, there is a slowdown. I get that.

Well, this is Curtis Chinn again. With respect to the numbers on Hawaii, these are past due not just nonperformers. But the nonperformers are included in these numbers, and really, this is influenced by the two relationships that Dean earlier commented on. If you exclude the nonperformers from these numbers, the 30 to 89 day delinquencies at the end of the second quarter were about $18 million or 44 basis points. That compares to about $55 million and 125 basis points at the end of the first quarter. So clearly the NPAs are what are influencing those numbers. Brian Roman – Robeco Investment Management: Okay. Two other questions. A year from now, how big are you going to be in assets? Because obviously you've got run off on the Mainland. And I think you said you're going to stop originating some sort of construction loan on the – on Hawaii. How big it's going to be?

Again, we talked about going forward we are deleveraging the balance sheet specifically with reducing our exposure on the Mainland. As a result we see the portfolio shrinking over the next year. Brian Roman – Robeco Investment Management: So a year from now next summer it's 4.1 billion today, how big do you think it will be?

It will be slightly down. Brian Roman – Robeco Investment Management: Slightly down. Okay.

If I could just correct one thing, too. We maybe didn't express ourselves very well, if you had the impression we said we were cutting off construction lending in Hawaii. It's a very good market. We continue to be very active in it. Brian Roman – Robeco Investment Management: It was probably my mistake I am sure. And then Ron, how do you pronounce your last name so I don't butcher it, Ron?

It's Migita. Brian Roman – Robeco Investment Management: Migita.

Good old English name. Brian Roman – Robeco Investment Management: Yes. There you go. A nice Jewish name. But what are your plans and expectations here? I mean, you obviously been Chairman of the Board for a while so, you can't sit here and say, well you just got on the job and you will figure it out after 30, 60, 90 days. What's kind like the vision thing for this company?

Well, I have really not assumed my position yet because Clint is still CEO up until today. But I promise the following, that I will look at all of our business lines with a critical eye. Secondly, I promise that ensure that the bank continues to serve the Hawaiian market and our customers, and that any kinds of operations that don't fit into this objective will be scrutinized. I would go on to say that we are fortunate to have the capital and the capacity to face the issues. And I want to position the bank to continue to serve our customers. Brian Roman – Robeco Investment Management: All right. Great. Thank you for taking my questions.

Thank you. (Operator instructions) Our next question comes from Brian Hagler of Kennedy Capital. Please go ahead. Brian Hagler – Kennedy Capital: Hey. I just had one quick follow-up. You mentioned that the credit costs in the second half would be down dramatically. I was wondering if you could provide any sort of range for the loan loss provision for the second half.

Well, what we said was our expectation is that credit costs should come down significantly from what we have experienced over the last year on a run rate basis. Brian Hagler – Kennedy Capital: Okay. Thanks.

Our next question comes from Tim O'Brien of Sandler O'Neil. Please go ahead. Tim O’Brien – Sandler O’Neill & Partners: Good morning, gentlemen. I have one question. And that regard to 14 it sounded like the 14 loans that you sold that were classified as available for sale on the Mainland, you gave some good characteristics on the seven that you retained, could you characterize those 14 that you sold in terms of what markets were the underlying collateral properties located in? Where were they? How far along the construction curve were they towards completion, home completion versus finish lots? Just a little bit of color on that portfolio you sold would be greatly appreciated? And I will step back.

Sure, Tim, this is Curtis again. Actually, the assets we sold were 16 loans, and one ORE property, so total of 17 assets. Of that 17, nine were land. So, there was no construction on those. Of the other eight, five were tract development, and three were condos. Several of the tract developments, we had finished inventory and there was no further construction going on, so the borrowers which obviously trying to sell the finished inventory but with sales just dropping through the floor, that was really problematic. In terms of the condos, two were completed, and one is still under construction. In the case of the condos again, absorption was very slow. Tim O’Brien – Sandler O’Neill & Partners: All right. Thanks a lot.

We show no further questions at this time. I would like to turn the conference over to Clint Arnoldus for closing remarks.

I would like to thank all of you for participating in our call today. This call went much longer than our normal calls, but these aren't very normal times, and we made the best effort we could to be as transparent in all of the factors that are influencing this bank as we could. I hope you found that helpful. I do want to underscore three key points. The first one is that Central Pacific Financial Corp's core operations in Hawaii remain very solid with strong operating fundamental. And the second point I want to underscore is we have undertaken proactive steps to actively reduce our credit exposure in the California real estate market. And the third is that we are well-capitalized. We have a solid plan in place to remain well-capitalized and we are well prepared for these challenging times facing financial institutions like ours all across the country. On a personal note, I just like to say it's been an honor and privilege to serve as President and CEO of Central Pacific Bank. We've been a bank in Hawaii since 1954, and over those 50 plus years, we faced many challenges and we have always prevailed. And I remain confident that Central Pacific under Ron Migita's leadership will successfully meet the challenges currently before us, and do what's best for our customers, our employees, our shareholders, and our communities for many years to come. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.