Bank fight heads
to regulatorCB and CPF trade arguments
in letters to a state agency
Central Pacific Financial Corp. accused acquisition target CB Bancshares Inc. of trying to sabotage its takeover attempt, in a letter delivered yesterday to the state agency in charge of approving CPF's merger application.
Glenn Ching, general counsel for CPF, said a May 9 letter sent to the Division of Financial Institutions by CB denouncing the proposed merger is "nothing more than bald, self-serving, hyperbolic statements bereft of any credible factual support."
Ching's letter, addressed to acting Commissioner Lynne Himeda, said CB doesn't have any justifiable basis for opposing CPF's proposed transaction.
"CBBI not surprisingly has resorted to pounding the table to create noise and painting scenarios divorced form reality in the hope of derailing the application process and precluding CBBI's shareholders from having an opportunity to make an informed decision," Ching said.
Among other issues raised, CPF said its commitment to the Community Reinvestment Act is well established despite CB pointing out that CPF's lending record is "low satisfactory." CPF said its overall rating, which also includes investment and service, is just two points away from an "outstanding" rating under Federal Deposit Insurance Corp. guidelines. CPF has 18 overall points, two more than CB. First Hawaiian Bank and Bank of Hawaii are the leaders with 24 each.
"CPF has clearly demonstrated its commitment to the communities in which we conduct business," Ching said.
CPF also said in connection with its proposal that it has committed to increase its community investment by $1 million.
CB spokesman Wayne Miyao said last night he had no immediate comment because he hadn't yet seen the letter.
