Isle banks to merge
operations in first
quarter of 2005
Central Pacific Bank and City Bank said in a joint internal letter made public yesterday that they expect to merge operations of the two banks in the first quarter of 2005.
Accounts, operating systems, signs, forms and other business functions will operate under the Central Pacific Bank name. Branch consolidations have not been finalized and the relocation of employees will be kept to a minimum, said the newsletter, which is intended to keep employees updated on the banks' merger process.
Federal and state regulatory approvals, as well as shareholder approvals, are still needed for the merger to take place.
The newsletter said that the banks' holding companies, Central Pacific Financial Corp. and CB Bancshares Inc., are tentatively scheduled to merge by the end of August.
The banks said City Bank customers will be able to use their checks for an interim period after the merger and the free personal-checking program offered by both banks will continue.
Both banks also defended the golden parachute payments made to some CB Bancshares executives. Central Pacific said the payments needed to be honored for the merger agreement to be reached.