Central Pacific Financial Corp. (NYSE:CPF) Q2 2019 Earnings Conference Call Transcript

Jul 24, 2019 • 01:00 pm ET

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Central Pacific Financial Corp. (NYSE:CPF) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and thank you for standing by, and welcome to the Central Pacific Financial Corp. Second Quarter 2019 Conference Call and Webcast. [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 like to turn the call over to Mr. David Morimoto, Executive Vice President, Chief Financial Officer. Please go ahead, sir.

Executive
David S. Morimoto

Thank you, Chuck. And thank you all for joining us as we review the financial results of the second quarter of 2019 for Central Pacific Financial Corp. With me this morning are Paul Yonamine, Chairman and Chief Executive Officer; Catherine Ngo, President and Chief Executive Officer of our bank subsidiary; and Anna Hu, Executive Vice President and Chief Credit Officer.

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 refer to our recent filings with the SEC.

And now I'll turn the call over to Paul.

Executive
Paul K. Yonamine

Thank you, David, and good morning, everyone. Over the past eight years, CPF has consistently improved its profitability, performance metrics and shareholder value. Nine months ago, the Board appointed me as CEO to take CPF to the next level of performance. I spent the last six months with Catherine and the rest of the executive management team developing a multi-faceted initiative to take us to the next level. Today, I'd like to introduce this initiative that we have named RISE2020.

RISE2020 will build upon the foundation that has led to our recent success. We view it as an enhancement to our current strategy and not as change in strategy. We plan to further emphasize our strength and invest for the future in areas of opportunity. RISE2020 includes numerous initiatives, and I would like to highlight four key areas of opportunity today, digital banking, revenue enhancement, branch transformation and operational excellence.

In the area of the digital banking CPF plans to implement best-in-class online and mobile banking platforms by the first quarter of 2020. We are currently developing new platforms that will replace our existing systems. Additionally, we are working to redesign our website and implement robust digital marketing capabilities. Revenue enhancements include the recent introduction of best-in-class small business products, including our Business Online Banking and Business Exceptional accounts. We also recently launched iBusiness Central and an enhanced suite of cash management products. Additionally, we plan to invest and emphasize our business development initiatives in Japan, where we have a sustainable competitive advantage.

In the area of branch transformation, CPF plans to revitalize Central Pacific Plaza, the building we own in the heart of downtown Honolulu. The redesign will include co-working areas for small business customers and community meeting space for local non-profits. Additionally, we will transform our flagship main branch to include innovative digital banking