Welcome to the first edition of Central Pacific Bank's Women's Business Central eNews!

This newsletter will equip you with fresh ideas and practical information to help you and your business flourish.

Women-owned businesses are a growing force in Hawaii’s economy. Hawaii is one of the top 10 states for fastest growth in majority women-owned firms. According to the Center for Women’s Business Research, as of 2006 there are over 50,000 privately-held, 50% or more women-owned firms in Hawaii, generating more than $10 billion in sales and employing 81,039 people. These firms account for 45% of all privately held firms in the State.  

Central Pacific Bank wants to be your partner. The mission of Women’s Business Central is to empower Hawaii’s women business owners and professionals by providing valuable information, education, and resources and networking opportunities. Central Pacific Bank recognizes and applauds the tremendous impact women in business have on our economy and our community, and is dedicated to helping them succeed in both their professional and personal lives. 

I hope you will take advantage of the benefits offered by Women’s Business Central. Check out our website to learn more about your benefits and read the success stories of fellow Women’s Business Central members.

Mahalo,

Susan Utsugi
Women's Business Central

Outlook for the Economy

Dr. Pearl Imada Iboshi, Chief Economist, Economic Research Administrator, Research and Economic Analysis Division, State Department of Business, Economic Development and Tourism, State of Hawaii

2006 ended with a very positive note.  The labor force grew by 2.7% from 2005 and registered the highest growth rate in the state since 1990.

Although we had more people in the labor force, the unemployment rate in 2006 was 2.6%. It was the second consecutive year that Hawaii had the lowest unemployment rate in the nation. A total of 15,750 wage and salary jobs were added in payroll in 2006, an increase of 2.6% from a year earlier.

The increase in jobs contributed to positive personal income growth, which increased by 5.9% during the first three quarters in 2006. While high, the growth of person income was lower than the growth rates in previous two years. Though total visitor arrivals were flat in 2006, arrivals from U.S. and Canada remained strong and offset the weakness in Japan market. Importantly, visitor spending increased by 2.9% compared with 2005. Visitor days, visitor arrivals, and visitor expenditures are predicted to grow 2.4%, 2.5%, and 6.0%, respectively, in 2007, followed by slightly lower growth in later years.

Projections of economic growth for the Mainland U.S and Japan, Hawaii’s two primary visitor markets, are reasonably strong for 2006 and next two years. The December 2006 Blue Chip Economic Consensus Forecasts expect the 2006 real GDP growth to be 3.3% for the U.S. and 2.7% for Japan. The January 2007 Consensus Forecasts expects GDP growth to be 2.4% for the U.S. and 2.0% for Japan in 2007. For 2008, GDP growth is expected to be 3.0% for U.S. and 2.2% for Japan. The U.S. consumer price index (CPI) is expected to increase 3.3% in 2006, followed by 2.0% in 2007 and 2.3% in 2008. It is expected that the continued growth in both economies will help to improve the outlook for the visitor industry. 

Prospects for construction in Hawaii’s economy remain positive. Despite some slowdown in residential permitting, total value of private building permits continues to grow with sharp increases in commercial and industrial permits, indicating more construction in coming quarters. Through the first 11 months of 2006, the statewide total value of private building permits increased 8.1% to nearly $3.5 billion. Government construction also remains strong. The ongoing $3.0 billion military housing privatization initiative will also add to positive growth in the Hawaii construction industry in coming years.

Nominal total personal income, not adjusted for inflation, increased 5.9% in the first three quarters of 2006 compared to the same period of 2005. Income grew in all major sectors except for Management of Companies and Enterprises. Information, Professional and Business Services and Natural Resources, Mining and Construction showed the highest rate of earning growth. Nominal personal income is forecast to increase between 6% and 7% for the next few years. Real personal income (inflation-adjusted) is expected to grow about 2%.

For 2006, the civilian labor force averaged 651,850 people, an increase of 2.7%  from 2005. The civilian unemployment rate (not seasonally adjusted) averaged 2.6% compared to 2.8% in 2005. We expect job growth to continue but at a more moderate pace of 1.5% in 2007 and to 1.2% in later years.

Creating Simplicity

Kelly Galvin, Owner, Organized in Paradise

Is your home a haven from a chaotic world? Can you find any item you need when you need it? 

If not, perhaps it is time to simplify and create organization and order in your home.

Creating an environment that supports your needs and lifestyle is what simplifying and organization is all about. I don’t sing the praises of the organization for its own sake – I value how it impacts the quality of my life.

Let’s be honest, most of us are very attached to our stuff, but there are times when it seems to have a life of its own. It almost seems to grow when we are not looking. At some point we notice that every drawer, cupboard, closet and shelf is filled to brim. The one time you are forced to face your stuff is when you move to a new home. It is usually shocking to see how much we have, and we wonder where it all came from.

Simplicity and organization is not about depriving yourself of things you enjoy or even love. In fact, it is the exact opposite. Simplicity means having ONLY things you love without excess and waste. Organization involves creating the appropriate placement for all the items in your home, based on usage and your personal style.

Start today by looking around your home and asking, "Do the items I see fit and enhance the lifestyle I’m living today?" Many will not. Anything you see that reflects your past experiences or future dreams should go. I believe if you keep only items that you use, love or add beauty and to your home you will enjoy an improved quality of life. You will be able to live more consciously, focusing on what is truly important. You’ve heard the saying "Less is more." I agree, give it a try.

For more information on how to create simplicity and order in your home contact Kelly at (808) 221-9153 or visit her website at www.organizedinparadise.com

Forward-Looking Statements

(these statements apply to Central Pacific Financial Corp. and all of its respective subsidiaries and affiliates, to include, without limitation, Central Pacific Bank, all of which are collectively referred to herein as the “company”)
This document may contain forward-looking statements concerning projections of revenues, income, expenses, earnings per share, capital expenditures, dividends, capital structure, or other financial items or matters, concerning future economic performance, concerning merger-related synergies or matters, concerning growth, concerning company operations, activities, initiatives, projects, products and services, or concerning any of the assumptions underlying or relating to any of the foregoing.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and generally include the words “believes”, “plans”, “intends”, “expects”, “estimates”, “hopes”, “envisions”, “targets”, “goals”, “projects”, “anticipates”, “strives” or words of similar meaning or expression.  While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions, are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect.  Accordingly, actual results could materially differ from projections for a variety of reasons, to include, but not limited to: the impact of local, national, and international economies and events on the company’s business and operations and on tourism, the military, the real estate market and industry, and other major industries operating within the Hawaii market and other regional markets in which the company conducts its business; the impact of legislation and regulation affecting the banking and financial services industry; the impact of competitive products, services, pricing, and other competitive forces within the banking and financial services industry; movements in interest rates; loan delinquency rates; and trading of Central Pacific Financial Corp. stock.  For further information on factors which could cause actual results to materially differ from projections, please see Central Pacific Financial Corp.’s publicly available Securities and Exchange Commission filings, including its most recent Form 10-K. The company does not update any of its forward-looking statements.

The articles and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. All credit products mentioned in this publication are subject to credit approval and certain restrictions apply. Women’s Business Central eNews is published by Central Pacific Bank Marketing Division. © 2007 Central Pacific Bank Member FDIC

For more information about Central Pacific Bank's services and products, contact us at:

Central Pacific Bank
P.O. Box 3590
Honolulu, HI 96811-3590

Customer Service Center:
(808) 544-0500 (Oahu)
1-800-342-8422
E-mail: