Bank exec says
merger would cause
few layoffsCentral Pacific's chief says
only higher jobs at City Bank
might go
No City Bank employees, except for a handful of executives, would lose their jobs if a hostile takeover of the bank's parent company is successful, Central Pacific Bank Chief Executive Officer Clinton Arnoldus announced yesterday.
"There's a lot of concern and anxiety over the loss of jobs," he said. "Therefore, we've worked hard in the past weeks to determine if we could relieve those anxieties and avoid layoffs."
The news might sway some opinions about Central Pacific's proposed takeover of City Bank, heading into a public hearing on the issue at the Capitol today. Critics of the takeover have cited the possibility of layoffs as one of their biggest concerns.
"We find it very suspicious and calculating that on the eve of the public hearing that they would come out with the statements they made," said City Bank spokesman Wayne Miyao. "The central point is, this is not a new offer. It's the same offer."
In April, Central Pacific Financial Corp. announced its intention to take over City Bank's parent company, CB Bancshares Inc. For the merger to go through, Central Pacific needs both shareholder and regulatory approvals.
After launching a large advertising campaign this spring to sway public opinion on the merger -- and running into fierce resistance from City Bank -- Central Pacific turned its attention to getting the required regulatory clearance for a takeover. Today's hearing by the state's Commissioner of Financial Institutions marks the first step in that process.
Central Pacific, with 25 branches, is the state's fourth-largest bank in terms of assets. City Bank, with 22 branches, is the fifth largest.
Arnoldus said that if the takeover is carried out, Central Pacific would be able to retain City Bank's more than 500 employees primarily by opening branches in new areas.
"Our commitment will be facilitated by other factors such as a hiring freeze we implemented in October, natural attrition, retraining, reassignments and the reallocation of employees to support our plans to expand to new areas and new services," Arnoldus said.
He said the pledge extends to all current City Bank and Central Pacific Bank employees, with the exception of a small group of City Bank executives whose employment would have to be negotiated.
"We're very confident of our decision, and we will make it work," Arnoldus said.
He also said that for every overlapping bank branch Central Pacific expects to close if the merger goes through, the financial institution would open one elsewhere.
City Bank has said that the takeover would result in the loss of 200 jobs, cause 10 branches to shut down and reduce competition. Arnoldus could not say how many branches would close if the merger is accepted.
Central Pacific officials have said the merger would create an institution able to compete with the state's biggest banks.