Central Pacific Financial Corp. (NYSE:CPF) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 01:00 pm ET


Central Pacific Financial Corp. (NYSE:CPF) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to the Central Pacific Financial Corp.'s Second Quarter 2020 Conference Call. [Operator Closing Remarks] This call is being recorded and will be available for replay shortly after its completion on the company's website www.cpb.bank.

I'd like to turn the call over to Mr. David Morimoto, Executive Vice President, Chief Financial Officer. Please go ahead, sir.

David S. Morimoto

Thank you, Chad, and thank you all for joining us as we review the financial results of the second quarter of 2020 for Central Pacific Financial Corp. With me this morning are Paul Yonamine, Chairman and Chief Executive Officer; Catherine Ngo, President; Arnold Martines, Executive Vice President and Chief Banking Officer; and Anna Hu, Executive Vice President and Chief Credit Officer. We have prepared a slide presentation that we will refer to in our remarks today. The presentation 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 statements, please refer to slide 2 of our presentation.

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

Paul K. Yonamine

Thank you, David and good morning everyone. As always, we appreciate your interest in Central Pacific Financial Corp. I'd like to start with an update on the COVID-19 pandemic response by the State of Hawaii and our company. The infection rate in the State of Hawaii continues to remain very low with roughly 1,800 cases as of July 28. Hawaii continues to have the lowest per capita infection rate in the nation. Our residents are abiding by government orders including required quarantine, face mask usage and social distancing. The state's local economy reopened in June and we will be reopening out of state tourism on September 1 through visitors that provide evidence of a negative COVID-19 test. We believe this is a balanced way to reopen out of state tourism while managing COVID infections.

While the tourism reopening will be at a gradual process it will help to start bringing back the much-needed business to our local economy. Travel bubbles between Hawaii and other countries of low infection rates continue to be discussed by our government leaders. At Central Pacific we continue to prudently manage through the pandemic. In the credit area we have thoroughly reviewed our loan portfolio. Adjusted risk ratings were warranted and determined that our credit risk is manageable. Our portfolio is conservative, well diversified and well collateralized. We continue to proactively work with our customers to help them through the pandemic as demonstrated by our significant Paycheck Protection Program or PPP loan originations and loan payment deferral programs.

Overall, we remain committed to supporting the needs of our customers and community during this time while providing the excellent service that we are known for and maintaining