David Morimoto – SVP, IR Ron Migita – Chairman, President and CEO Dean Hirata – Vice Chairman and CFO Mary Weisman – Chief Credit Officer

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Central Pacific Financial Corp. fourth-quarter 2009 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 call is being recorded and will be available for replay shortly after its completion on the Company's website at www.centralpacificbank.com. I would now like to turn the conference over to Mr. David Morimoto, Senior Vice President, Investor Relations. Please go ahead, sir.

Okay, thank you, Andrea, and good morning, everyone. Today's call will refer to a slide presentation that can be found on the investor relations page of our website at centralpacificbank.com. During the course of today's call, management may make forward-looking statements. While we believe these statements are based on reasonable assumptions, they 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 and our other recent documents filed with the SEC. And now I'll turn the call over to Ron Migita, Chairman, President, and CEO.

Thank you, David, and thank you all for joining us today to review the financial status of Central Pacific Financial Corporation for the fourth quarter of 2009. I will be highlighting the key issues pertaining to our fourth quarter, focusing on actions we are taking to position our company for recovery and providing our outlook for 2010. Our Chief Financial Officer, Dean Hirata, will provide a detailed report of our financial performance; and Mary Weisman, our Chief Credit Officer, will discuss our asset quality status. Also with us on this call are Denis Isono, Vice Chair and Chief Operations Officer; Blenn Fujimoto, Vice Chair, Hawaii Market and Lance Misomoto, [Ph] Executive Vice President, Commercial Market. We will be happy to address any questions you may have at the end of our report. For the quarter ended December 31, 2009, the Company recognized a net loss of $77.8 million. This loss included a $32 million increase in the valuation allowance against net deferred tax assets, compared to an increase in the valuation allowance of $61.4 million in the previous quarter. Credit costs for this quarter totaled $88.5 million compared to $145.1 million in the previous quarter and were primarily comprised of a provision for loan and lease losses of $84.3 million as compared to $142.5 million in the third quarter of 2009. Our allowance for loan and lease losses was increased to 6.7% of total loans and leases as of December 31, 2009, from 5.9% on September 30, 2009. Total loans and leases decreased by $394.7 million from the end of the third quarter and by $967.3 million for the full year. We have made good progress in reducing our commercial real estate loan concentration in the fourth quarter. A total of $204.4 million in CRE loans were sold in the…

Thank you, Ron. Our financial presentation starts on slide3. Our near-term objectives continue to be reducing credit risk, maintaining strong liquidity and raising additional capital for preserving and building our core bank franchise. In addition to reviewing our fourth quarter 2009 financial results, we also provide details regarding the steps we have taken to reduce our credit risk maintain our strong liquidity and grow our core bank franchise. With respect to capital, as Ron previously stated, we continue to pursue all capital raising options including private equity placements and public offerings, and are currently in discussions with potential investors. As a publicly traded company, we are legally prohibited from providing further details of our capital raising efforts at this time. Turning to slide 4, which provides a brief overview of our quarterly results, I won't go through the items here, Ron has covered this previously. So moving to slide 5. For the third quarter of 2009 net interest income totaled $38.5 million compared to $43.5 million for the third quarter of 2009. And as you can see from the table our reported net interest margin was 3.30% in the fourth quarter of 2009 compared to 3.56% in the previous quarter. Our margin was negatively impacted by interest reversals on nonaccrual loans totaling $1.9 million, declining loan yields, and an increase in our balance sheet liquidity. Excluding the effects of the interest reversals, the fourth quarter margin was 3.46% compared to 3.72% in the previous quarter. Turning to slide 6, for the fourth quarter 2009 other operating income totaled $11.7 million compared to $15.4 million in the third quarter 2009. The decrease was primarily due to lower unrealized gains on outstanding interest rates locks totaling $1.6 million. Lower gains related to the ineffective portion of the cash flow hedge totaling $1.3 million and lower gains on sales of residential mortgage loans totaling $1.1 million. Moving to slide 7. For the fourth quarter of 2009 other operating expense totaled $43.9 million compared to $89.5 million in the third quarter of 2009. The decrease was primarily due to $50 million non cash goodwill impairment charge recorded in the previous quarter. And lower credit related charges totaling $1.2 million and these are partially offset by higher reserves for un-funded commitment of $2.8 million and higher legal and professional services cost of $2.5 million. As we move to slide 8, I’ll now turn it over to Mary to discuss our credit risk and asset quality. Mary?

Thank you, Dean. Credit quality remains weak as real estate projects continue to experience slow sales and lease absorption, rising vacancies coupled with declining lease rate and lower property valuations especially in Hawaii. Net chargeoff for the fourth quarter were $83.9 million down $19.8 million on a sequential quarter basis. Fourth quarter losses included $38.2 million associated with the sale of $204.4 million in Hawaii and California commercial real estate loans. For the full year, net chargeoffs were $242.4 million compared with $142.5 million in 2008. Mainland commercial real estate losses were $140.8 million, up $3.8 million year-over-year; and Hawaii commercial real estate losses were $72.4 million, up $69.7 million in 2009. Nonaccrual loans, including loans held for sale, increased to $493.8 million, up $96.4 million on a sequential quarter basis. Quarter-over-quarter, mainland nonaccruals decreased $15.5 million to $177.5 million; and Hawaii nonaccruals increased $111.9 million to $316.3 million. 78% of total nonaccruals including loans held for sale were related to commercial land and construction loans, both on the mainland and in Hawaii. Nonperforming loans totaled $520.8 million, an increase of $102.3 million from the third quarter. The quarterly provision for loan and lease losses totaled $84.3 million, resulting in an allowance for loan and lease losses of $205.3 million or 6.7% of outstanding loans and leases. The full-year 2009 provision was $327.8 million, and the allowance increased by $85.4 million during the year. Turning to slide nine. Since the beginning of the year, total outstanding balances have decreased 24% or $967 million to $3.1 billion. Outstandings on mainland real estate loans have decreased $339 million to $701 million; and loans in Hawaii have declined $628 million to $2.4 billion. Turning to slide 10. During the fourth quarter, we successfully completed the sale of 58 commercial real estate loans that…

Thank you, Mary. Maintaining strong liquidity is also one of our top priorities, as you see on slide 26. The following points demonstrate our strong liquidity position at December 31, 2009, a loan-to-deposit ratio under 86%. Deposits fund 73% of our total assets. Brokered CDs of only $8 million or less than 0.2% of all our total deposits. Cash and cash equivalents greater than $488 million and over $620 million in available borrowing capacity. Moving to slide 27. Our deposit base is the foundation of the value in our core bank franchise. But in spite of these trying times, our deposit base has (inaudible) up relatively well, which is a testament to our loyal customers and the strength of our deposit franchise. At December 31, 2009, our total deposits totaled $3.6 billion, of which $3 billion or 83% represent core deposits. As I mentioned on the previous slide, brokered CDs account were a nominal 0.2% of our total deposits, and CDs over $250,000 accounts for only 2.9% of the total. We reduced our average cost of deposits for the current quarter to 83 basis points compared to 1.02% in the previous quarter. Turning to slide 28, while credit, capital, and liquidity remain our near-term priorities, we are also focused on preserving and building our franchise in our core Hawaii market. Our commitment to exceptional customer service was validated by favorable results from third-party surveys and our strong core deposit retention ratio of 87% in 2009, up from 77% in 2008. We originated more SBA loans in 2009 than the three largest banks in Hawaii combined, and we are recognized as the SBA lender of the year in our category for the fifth consecutive time. We also had record originations of $1.9 billion in residential loans during 2009, which was more than any Hawaii-based lender. I will close the formal portion of our presentation on slide 29, by recapping our near-term objectives. With respect to credit, we have made progress in reducing our commercial real estate exposure through loan sales and are pursuing additional loan sales along with other measures to improve our asset quality and further reduce credit risk going forward. With respect to liquidity, driven by a strong and loyal core deposit base, combined with reductions in our loan portfolio, we were able to maintain a strong position. With respect to capital, we continue to make progress. We are exploring all capital raising options including private equity placements and public offerings, and are currently in discussions with potential investors. We continue to work through these near-term challenges without losing focus of our core franchise, our loyal customers, and the important and relevant role we play in the communities we serve. This concludes our presentation and we will now open it up to questions.

(Operator Instructions) At this time we have no questions. I would like to turn the conference back over for any closing remarks.

Okay, well, thank you. On behalf of our Company, thank you for your participating this morning on our earnings call. As we move forward with the immediate issues and lay the groundwork for the longer term, I would like to take this opportunity to express our appreciation to our staff, customers, and shareholders for their continued support during these challenging times. Thank you very much, everybody.

This concludes today's conference. Thank you for attending. You may now disconnect.