Buyout to close
16 isle branches
American Savings will likely cut
By Rick Daysog
140 jobs when it buys BofA-HawaiiStar-Bulletin
American Savings Bank plans to close 16 branches once it completes its $96 million acquisition of Bank of America-Hawaii. The company said the closings will reduce costs and eliminate redundant branches. The closings likely will result in the loss of about 140 jobs, about a quarter of Bank of America's 585 full-time local staff.
With the consolidation, American Savings will have about 70 branches, making it the third largest Hawaii financial institution behind Bank of Hawaii's parent Pacific Century Financial Corp., which has 190 branches and offices in Hawaii, and First Hawaiian Inc., which has more than 100 locations statewide.
Under the plan, American Savings, a unit of Hawaiian Electric Industries Inc., will shut down nine of Bank of America-Hawaii's 39 branches and move customer deposits to nearby American Savings locations. American Savings, which now has 47 branches, also will close seven of its branches and move the business to nearby Bank of America locations.
The changes won't occur until the Bank of America-Hawaii sale is completed later this year or in 1998. Until then, it should be business as usual for consumers at both banks, said Harvey Radin, Bank of America's spokesman.
Any branch closings would require federal and state regulatory approval.
According to Radin, when American Savings announced in May that it was acquiring Bank of America's local operations it agreed to buy just 30 branches.
American Savings said that many of the Bank of America branches that will be closed are located next door to, or in the same shopping center as, American Savings branches.
For instance, Bank of America's Hawaii Kai branch on Kalanianaole Highway, its Kaimuki branch on Waialae Avenue and its Salt Lake branch on Ala Lilikoi Street will be closed and its deposits will move to America Savings branches next door.
Branches on Kamehameha Highway in Haleiwa and on East Manoa Road in Manoa will be merged with nearby America Savings branches while the company's downtown office at Alii Place will be closed and its accounts will be moved to American Savings' Bishop Square branch.
On the neighbor islands, Bank of America locations in Hilo on Kilauea Avenue, Kahului's Puunene Avenue and Kauai's Kukui Grove will be closed and their business move to nearby American Savings branches.
As for American Savings branches, the Ala Moana location on Kapiolani Boulevard will be closed and its deposits will go to Bank of America's nearby Kapiolani branch. America Savings also will close its Mililani branch on Kipapa Drive and transfer accounts to Bank of America's branch next door.
Accounts at American Savings' Kailua branch on Hahani Street will be moved to Bank of America's Hamakua Drive location while branches in Pearlridge, Liliha, Wahiawa and Waikiki will be shut and their accounts moved to nearby Bank of America locations.
