Good afternoon and welcome to the Central Pacific Financial Corp Second Quarter Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today’s presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mr. David Morimoto. Mr. Morimoto, please go ahead.

Thank you, Ed and thank you all for joining us as we review our financial results for the second quarter of 2014. Highlights and comments will be provided by John Dean, Chairman and CEO; Lance Mizumoto, President and Chief Banking Officer; and Denis Isono, Executive Vice President and Chief Financial Officer. Also present and available for questions are Catherine Ngo, President and Chief Operations Officer and Bill Wilson, Executive Vice President and Chief Risk Officer. During the course of today’s call, management may make forward-looking statements. While we believe these statements are based on reasonable assumption, they involve risk and may cause actual results to differ materially from those projected. For a complete discussion of the risks related to forward-looking statements, please refer to our recent filings with SEC. And now, I’ll turn the call over to John.

Thank you, David and good morning everyone. We’re pleased to report another solid quarter of financial performance, resulting in net income of $9.2 million. The second quarter net income was impacted by a provision for loan losses compared to the previous 13 quarters where we recognized credits to loan loss provisions. Denis Isono, our Chief Financial Officer, will provide more detail in his financial highlights during this quarter. Loan growth continued to be strong in the quarter, driven by improving market conditions and our efforts to build upon our client relationships. Total deposits as well as core deposits maintained growth at a stable rate. We continue to shift our asset mix from our investment securities to loans at higher yields. Our overall credit risk profile also continued to improve, with non-performing assets at 0.9% of total assets as of the end of the second quarter. As a result of the Company’s earnings consistency and strong capital position, we completed $56.2 million stock repurchase from our two largest shareholders on April 7th. We reported last quarter that we repurchased $68.8 million of our common stock through a tender offer that closed on March 28th. The combined $125 million stock repurchase represented 6.2 million shares for almost 15% of our Company’s outstanding common stock. In addition, we initiated a stock buyback program on May 20th, for up to $30 million and today we repurchased 3.4 million, or 181,200 shares, in the open market. I am pleased to report that our Board of Directors increased the quarterly dividend on our Company’s common stock to $0.10 per share from $0.08 per share and is payable in September of this year. Overall, our Company continues to move in the right direction and meeting our revenue targets while strengthening our infrastructure to improve operational efficiencies and…

Thank you, John. For the second quarter of 2014, we reported net income of $9.2 million or $0.25 per diluted share compared to net income of $9.8 million or $0.23 per diluted share reported last quarter. Net interest income for the quarter was $35.9 million compared to $35.8 million in the previous quarter. Our net interest margin was 3.35% and 3.31% for the same respective quarters. Sequential quarter increase in net interest income and net interest margin was primarily due to the growth in our average loan portfolio of $97.1 million and a reduction in our average investment securities portfolio of $147.3 million. The sequential quarter increase in net interest income and net interest margin was accomplished despite our successful efforts to repurchase stock and reduce shareholders’ equity. Our loan and lease portfolio ended the quarter at $2.79 billion, an increase of $96.7 million from the $2.70 billion at the end of the first quarter. We continue to be encouraged by our ability to meaningfully grow on loan and lease portfolio. Lance Mizomoto will provide more insight into the loan portfolio later in this cal. Our investment securities portfolio ended the quarter at $1.47 billion. The taxable equivalent yield on our investment portfolio declined to 2.60% from 2.62% reported for the first quarter. During the second quarter, we sold investment securities totaling $162.2 million as part of a balance sheet optimization strategy to improve our interest rate risk profile. These securities had a weighted average life of 5.7 years and average yield of 2.60%, and the sale resulted in a gain of 240,000. Non-interest income for the quarter totaled $12.0 million, up from $10.1 million in the previous quarter. The increase in other operating income for the last quarter was primarily due to higher unrealized gains on loans held for…

Thanks Denis and good morning everyone. The quarter-over-quarter increase in total loans and leases by $96.7 million or by 3.6% can be attributed to increases of residential mortgages of $46.8 million, $27.3 million in consumer loans, $14.2 million in commercial mortgages and $13.2 million in construction and development loans. Offsetting declines in loan balances included $3.5 million in commercial loans and $1.3 million in leases. The average balances of our total loans and leases increased by $97.1 million or by 3.6% in the second quarter compared to the previous quarter. The year-over-year increase in total loans of $421.1 million was primarily driven by residential mortgages, consumer loans, and commercial loans. Our core customer base remains stable throughout the quarter and our core deposit base increased by 19.4 million. We continue to focus on strengthening our customer relationships and originating quality credits across all loan types. In addition to enhancing our revenue sources, we have been aggressively working on operational process improvements through technology as well as expanding our electronic transaction channels through mobile access. Going forward, the market conditions in Hawaii continue to look encouraging for future business development. The accelerated development of residential units on Oahu has been matched by strong consumer interest. And we still see growing optimism within our local business community. That completes my summary on our business development activity. And I will now turn the call back to John for his closing remarks. John?

Thank you, Lance. In summary, we continued to make significant progress during the second quarter as evidence by our earnings before taxes and probations. Our asset composition, credit risk profile and loan loss reserves are moving steadily more normalized pre-recession levels. While we still have work to do in the area of process improvements and operational efficiencies, we’re pleased with the direction and pace of our progress. We remain confident that the improving market conditions in Hawaii will provide future opportunities for quality growth. I’d like to take this opportunity to thank our shareholders and customers for their continued support and confidence as we work hard to attain the milestones of our business plan. At this time, we’ll be happy to address any questions you may have. Thank you.

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Joe Morford of RBC Capital Markets. Please go ahead.

Good afternoon. It’s actually Janet Aldrich for Joe. Just wanted to follow-up on the balance sheet optimization strategy that you’ve been talking about, trying to understand how much are you willing to run-down the securities portfolio or is it just a matter of replacing loans or having the loans replaced whatever you run-off in the portfolio. RBC Capital Markets: Good afternoon. It’s actually Janet Aldrich for Joe. Just wanted to follow-up on the balance sheet optimization strategy that you’ve been talking about, trying to understand how much are you willing to run-down the securities portfolio or is it just a matter of replacing loans or having the loans replaced whatever you run-off in the portfolio.

Janet, I’m going to turn it over to Denis our CFO for the question.

The investment portfolio is probably about 30% of assets and our objective has been to run down to reallocating to the loan portfolio down to about 20% that we have targeted. So you’ll see little more and more run-off on the portfolio slightly in the loan growth.

Okay, that’s helpful. And then in terms of the loan growth, it looks like it’s picked up. So where did you end the quarter in terms of your pipeline? RBC Capital Markets: Okay, that’s helpful. And then in terms of the loan growth, it looks like it’s picked up. So where did you end the quarter in terms of your pipeline?

I’m going to turn it to Lance, our CBO.

Hi Janet, this is Lance. In terms of our pipeline, I think it’s been fairly steady. So, we’re still continuing to see opportunities in the marketplace. And I think with the continued strength in the Hawaii economy, we’re continuing to see activities not only in the construction and development loan side but also on the commercial side.

Okay, and then finally in terms of the provision that you took this quarter just trying to understand. You still have a fairly high level of reserve coverage. So was the idea that this was intended to cover both the net charge-offs and the growth? And how we should think about it going forward? Thanks very much. RBC Capital Markets: Okay, and then finally in terms of the provision that you took this quarter just trying to understand. You still have a fairly high level of reserve coverage. So was the idea that this was intended to cover both the net charge-offs and the growth? And how we should think about it going forward? Thanks very much.

Bill, Bill Wilson, our Chief Credit Officer.

Good morning Janet. Probably less of the provision being dictated specifically by those two charge-offs more just the impact of those two specific charge-offs on the methodology is what drove the reserve. We would expect that going forward we do need these two large charge-offs as being anomalous I think the benefits and as the newer legacy issues being dealt with as we look forward we would expect that we will continue the path that we’ve been on over the last several quarters.

Okay thank you very much. RBC Capital Markets: Okay thank you very much.

Thank you, Janet.

Our next question comes from Aaron Deer of Sandler O’Neill & Partners. Please go ahead. Aaron Deer - Sandler O’Neill & Partners: Good morning guys. Denis, I’m going to go back to you on your questions or to your answer rather to the mix shift on the earning assets. Just to clarify. Is it your expectation that the earning asset levels probably stays fairly leveled but that you just get a shift out of the securities book into loans or you actually looking to reduce the overall size of the loan book? And on an absolute levels such that you see a lower level of earning assets.

I might jump in if I can here in first, John here. I’m not sure I’m following you. You’re saying again, obviously we stated earlier that we see the shift going from the investment portfolio over to the loan portfolio. We think we can have that continue to grow without total assets necessarily growing for a while. Is that your question? Aaron Deer - Sandler O’Neill & Partners: It’s more along the lines of -- as that mix shift occurs, is the loan, do you expect the loan growth to fully replace the reduction in investment securities such that the level of earning assets stays leveled?

Aaron it’s David. I think that’s the general philosophy. But obviously the quarter, the sequential quarter loan growth, will not line up exactly with the sequential quarter investment portfolio run-off. And we’re not going to be necessarily selling every quarter out of the investment portfolio. So it’s going to be somewhat opportunistic. I’m not sure if that helps. But we could end up borrowing at some point and leveraging off the balance sheet a little, so it’s not going to be a direct offset. Aaron Deer - Sandler O’Neill & Partners: Okay. And then on the expense side, I think you guys are still working hard to get some of these efficiency improvements. So just wondered if you could give us an update on kind of what your expectations are for operating expenses going forward and remind me where the target efficiency level is and when we hope to get there.

Yes. Well Aaron, the targeted normalized run-rate for operating expense we expect between 31 million and 33 million and then we’ll return to buyer’s much the efficiency we should now as quickly as we can in a reasonable manner. So, we’re looking in through again into the below 60s in the near-term. Does that help? Aaron Deer - Sandler O’Neill & Partners: Yes. And then lastly Lance, if I was just hoping you could give a little more color on and you sounded like when you were talking about the expectations for growth, you sounded positive on the commercial side. Just to be clear you’re talking about CNI versus commercial real-estate and what kind of growth you anticipate?

I think that the growth is going to be more on the commercial real-estate side as well as our construction activity. Although, you’re seeing -- we’re seeing ancillary benefits of the construction activity on the CNI front as contractors or sub contractors are looking to expand either their working capital lines looking for properties to occupy. There is lot of them like to occupy their own footprint. So it’s a combination of both commercial real-estate activities as well as CNI. Aaron Deer - Sandler O’Neill & Partners: Okay.

So the pipeline again I think it’s still fairly strong and we’re continuing to see more activity as the economy continues to stay strong. Aaron Deer - Sandler O’Neill & Partners: That’s great. Okay thanks for taking my question.

Thank you.

(Operator Instructions) Well, this concludes our question-and-answer session. I would like to turn the conference back over to Mr. John Dean for any closing remarks.

Thank you. And thank you everyone for participating in our earnings call for the second quarter of 2014. We look forward to future opportunities to update you on our progress. Have a good day.

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.