STAR-BULLETIN / APRIL 2004 In April, Ronald Migita, then president and CEO of CB Bancshares and Clint Arnoldus, then chairman, president and CEO of Central Pacific Bank, answered questions about the two banks' merger. Yesterday, it was announced that nine branches of the merged bank would close.

Isle bank merger
results in scale-back

Central Pacific will close
nine branches but
open one on Maui

Central Pacific Financial Corp., ending months of suspense, announced last night it would consolidate nine overlapping branches, relocate one branch and open another one.

Branch closures Nine bank branches will be closed during the first quarter of 2005 as part of the consolidation of City Bank into Central Pacific Bank: Central Pacific Bank branch: » Kailua, Daiei branch, 345 Hahani St. City Bank branches: » Downtown Honolulu, 1111 Bishop St. and 201 Merchant St. » Waipahu, 94-210 Pupukahi St. » Hilo, 333 Kilauea Ave. » Kona, 75-1027 Henry St. » Kahului, 285 W. Kaahumanu Ave. » Kihei, 1819 S. Kihei Road » Lihue, Ben Franklin branch, 4100 Rice St. Relocations: » The City Bank branch at 1001 Kamokila Blvd. in Kapolei will move to 680 Kamokila Blvd. New branches: » A new Central Pacific branch will be established at 2061 Wells St., Wailuku.

Eight of the nine branches that are closing belong to City Bank parent CB Bancshares Inc., whose acquisition by Central Pacific became effective on Wednesday. The City Bank closures include all of its neighbor island locations as well as two in downtown Honolulu. In addition, the City Bank branch in Kapolei will be relocated.

The only Central Pacific branch to close will be the Daiei facility in Kailua.

Central Pacific has said the bank merger will not lead to employee layoffs, though the company has offered a voluntary separation package.

Central Pacific also announced it would open a new branch in Wailuku, Maui, after the merger of the two banks occurs during the first quarter of next year. The company said it is also looking at nine sites for new branches.

Wednesday's merger involved the banks' holding companies.

Central Pacific, which earlier had indicated that 10 branches might close, said customer service needs, employee positions and overall impact to the company's performance were considered in determining its branch strategy.

"The merger provides us with an opportunity and the resources to expand our banking services into communities not being served by either bank through the consolidation of overlapping branches," Central Pacific Chief Executive Clint Arnoldus said.

Central Pacific said it will operate 37 branches upon the closing of the banks' merger. Those include 31 branches on Oahu, two on the Big Island, three on Maui and one on Kauai.

Currently, Central Pacific and City Bank operate 23 and 22 branches, respectively.