CPB to outsource
asset division
Central Pacific Bank, which heralded the creation of a locally based asset management division 13 months ago as a way to expand customer service, now plans to outsource that operation to a mainland company.
Ann Takiguchi, spokeswoman for Central Pacific, said the bank is still finishing the transfer and that details will be forthcoming in a few weeks. She said no decision has been made on the status of the six employees who make up the group.
"Our business strategies have evolved and a decision was made to outsource that function," Takiguchi said.
At least five members of the asset management team worked in a similar division at Bank of Hawaii. David Zerfoss, who previously headed Central Pacific's asset management team as the chief investment officer, retired in February after eight months on the job and was replaced by Lorene Okimoto.
Two months after his retirement, Zerfoss pleaded guilty in federal court to possessing child pornography downloaded from the Internet.
Zerfoss is due to be sentenced in January.
The bank said in its most recent Securities and Exchange Commission filing that the establishment of the asset management division largely contributed to an 11.3 percent first-quarter increase in "other operating expenses" to $14.5 million from $13.1 million a year earlier.
The asset management division provides clients with specialization in equity and fixed-income analysis, particularly in the area of Hawaii municipal bonds, in addition to portfolio management.
Takiguchi said the bank wouldn't disclose how much in assets is overseen by the division.