Central Pacific Financial Corp New

Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to the Central Pacific Financial Corp. Third Quarter 2022 Conference Call. During today's presentation, all parties will be in listen-only mode. Following the presentation, the conference will be open for questions. This call is being recorded and will be available for replay shortly after its completion on the website and the company's website at www.cpb.bank. I'd like to turn the call over to Mr. David Morimoto, Senior Executive Vice President, Chief Financial Officer. Please go ahead, sir.

Thank you, Dante, and thank you all for joining us as we review the financial results of the third quarter of 2022 for Central Pacific Financial Club. With me this morning are Paul Yonomide, Chairman and Chief Executive Officer, Catherine Ngo, Executive Vice Chair, Arnold Martinez, President and Chief Operating Officer, and Anna Hu, Executive Vice President and Chief Credit Officer. We have prepared a supplemental slide presentation that provides additional details on our release and is available in the investor relations section of our website at cpd.net. 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 our forward-looking statements, please refer to slide two of our presentation. And now I'll turn the call over to our chairman and CEO, Paul Yonemune.

Thank you, David, and good morning, everyone. As always, we appreciate your interest in Central Pacific Financial Court. I'll start this morning with an update on the Hawaii market, then turn it over to the team to share our strong third quarter financial results, as well as other key updates. The Hawaii tourism sector continues to perform well. Even with the summer travel season completed, we are still seeing visitor arrivals at 90% or greater compared to pre-pandemic levels from 2019. The majority of those visitors are from the U.S. mainland. International travel to Hawaii is starting to gradually pick up now that Japan has dropped travel restrictions and is fully open. The weak yen does present some headwinds. Despite that, we expect a recovery of Japanese visitors going into 2023 due to significant pent-up demand. This timely recovery will support Hawaii's overall economy, which could experience a moderate slowdown in other sectors in 2023. Visitor spending is strong, reaching $1.7 billion in August, an increase of 13.8%, compared to the same month in 2019. Hotel performance continues to improve with total statewide hotel occupancy at 77% and an average daily rate of $380 in August. Hawaii's employment and housing sectors are solid as well. Our statewide seasonally adjusted unemployment rate was at 4.1% in August 2022 and is forecasted by the University of Hawaii Economic Research Organization to remain fairly stable in 2023. Housing prices in Hawaii remains very strong, with the Oahu median single-family home price at $1.1 million in September 2022, which is up 5% from the previous year. Like the rest of the nation, we have seen some moderation in home sales activity due to the significant rise in interest rates, resulting in less home buying power. With that said, the Hawaii housing market remains healthy with strong demand and low inventory, making it less likely to experience a material downturn compared to most other U.S. markets. In the Great Financial Recession, the Hawaiian market fared better than most states, and with our continued strength, we believe this will once again be the case. Now I'll turn it over to Arnold Martinez, our President and Chief Operating Officer, to discuss our third quarter results.