Central Pacific Financial Corp New

Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to the Central Pacific Financial Corp First Quarter 2023 Conference Call. During today's presentation, all parties will be in a 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 company's website at www.cpb.bank. I'd like to turn the call over to Mr. David Morimoto, Senior Executive Vice President and Chief Financial Officer. Please go ahead.

Thank you all for joining us as we review the financial results of the first quarter of 2023 for Central Pacific Financial Corp. With me this morning are Arnold Martinez, President and Chief Executive 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 cpb.bank. 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 statement, please refer to slide two of our presentation. And now, I'll turn the call over to our President and CEO, Arnold Martinez.

Thank you, David. Aloha and good morning, everyone. We appreciate your interest in Central Pacific Financial Corp. As we normally do, I'll start with an update on the Hawaii market, then I'll turn it over to the team to provide additional detail and insights on our financial and credit metrics, as well as other key updates. The Hawaii tourism industry is performing well, with year-to-date visitor arrivals at pre-pandemic levels, indicating the recovery continues. the majority of visitors continue to be from the U.S. mainland. Japanese visitor arrivals are increasing modestly, but remained at only about a quarter of pre-pandemic levels. We anticipate that as this year progresses, we'll see continued improvement in the international visitor markets, which will help to offset an expected slight decline in U.S. arrivals. Hawaii visitor spending is robust, totaling $1.64 billion in February, an increase of 18% compared to the same month in 2019. Hotels in Hawaii continue to perform well, with total statewide hotel occupancy in February at 76%, up 5% from a year ago, and an average daily rate of $387, up 10% from a year ago. Hawaii's employment and housing sectors remain solid and stable. Our statewide seasonally adjusted unemployment rate was at 3.6% in February, which was in line with the national unemployment rate. Year over year, non-farm payroll statewide increased by 24,000 jobs, or 4%. Labor market conditions overall have normalized, despite certain sectors of our service industry still dealing with a shortage of workers. Housing prices in Hawaii remain very strong, with the O'ahu median single-family home price back up to $1.1 million and the median condo sales price setting a new record of $536,000 in March. Home sales volumes improved month over month in March, but fell short compared to 2022. While we continue to experience some moderation in sales activity and prices, the Hawaii housing market remains very healthy with continued strong demand and low inventory. Overall, while we continue to monitor potential impacts of a slowdown in the U.S. mainland, the Hawaii market has a healthier outlook compared to the nation as a whole, which gives us optimism for the rest of this year. Given the industry events that occurred last month, impacting a few large regional banks, I want to reiterate that CPF has strong liquidity, capital, and credit. Our deposit portfolio is diversified and long-tenured. Our business model is based on longer-term customer relationships that are sticky and last-rate sensitive. CPB has $6.7 billion in relationship deposits with approximately 50% of our customers having been with CPB for more than 10 years. 66% of our deposits are FDIC insured or collateralized, and we've experienced a modest net inflow of deposits since March as customers look to diversify their deposit portfolios. As the industry situation continues to settle down, we remain focused on liquidity while carefully and prudently making asset growth decisions. Going forward, We will remain nimble and continue to focus on our strategic pillars while taking steps to manage any emerging risks. Finally, our leadership transition has gone smoothly, and I'm proud of our exceptional team of employees who continue to step up every day to serve our customers and the community. I'll now turn the call over to David Morimoto, our Chief Financial Officer. David.