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City Bank-
International S&L
merger approved
Two thrift branches will
Star-Bulletin staff
close in the consolidationState and federal regulators have given City Bank the go-ahead to absorb its affiliate, the International Savings & Loan Association, by July 1.
The Federal Deposit Insurance Corp. and the state Division of Financial Institutions yesterday approved the merger of the companies, both of which are owned by Honolulu-based CB Bancshares Inc. Two International Savings branches will close -- Kapiolani and Kahului, Maui -- because they operate next door to City Bank branches. The other nine ISL branches will remain open, but change their names to City Bank.
Some layoffs could occur, but not many, Senior Vice President Wayne Miyao said yesterday, noting CB has already streamlined the operations of both institutions. Miyao would not say exactly how many employees could be affected.
City Bank's 12 branches will jump to 21 on Oahu, Maui and the Big Island, although the company will remain the state's No. 5 depository financial institution, with $1.6 billion in assets.
CB bought International Savings in 1994 for $50 million, and announced the merger in 1996 to control costs at City Bank. Company officials nixed the plan a year later. After combining several parts of both companies, including back-office operations, management and product lines, merging reportedly became unnecessary.
CB also called it off because it feared losing customers to competing S&Ls in Hawaii.
Since then, however, two other thrifts have been absorbed by banks, paving the way for CB to change its plan again in December.
CB's stock price remained unchanged today at $24.69, just above its 52-week low of $22.75.
For the quarter ending March 31, CB reported a 23.2 percent increase in net income, to $2.43 million from $1.98 million during the same period last year.
