Isle investors
move to start fifth
locally based bank

Following the recent merger of City Bank and Central Pacific Bank, a former Central Pacific executive is spearheading a local investors group that is behind the first commercial bank application filed with the state since 1989.

The new financial institution, Pacific Rim Bank, would become the fifth commercial bank in Hawaii and the seventh bank or thrift in the state if it receives state and federal regulatory approvals. The last bank to file an application 16 years ago never raised the necessary capital to get off the ground.

Austin Imamura, who retired as former executive vice president and secretary of Central Pacific Financial Corp. in 2002, would be Pacific Rim's chief executive officer, according to the application with the state Division of Financial Institutions. A separate application was filed with the Federal Deposit Insurance Corp.

Imamura served as a City Bank consultant for two years after he left Central Pacific. Other investors include Kelvin Bloom, president of Aston Hotels & Resorts; Alan Pflueger, president of five Pflueger auto dealerships on Oahu; Mark Southwick, a former banker for Raymond, Wash.-based Harbor Community Bank; Thomas Ritchie, president and CEO of Transpacific Mortgage Group; Ernest Lum, a construction industry professional; Dwane Betsill of Maui; Gary Iki, a Honolulu-based investment banker; and David Kowalski, a health care professional. Southwick will be the chief financial officer.

All will become directors of the bank, along with Lawrence Miwa, who will be senior vice president. It was not immediately clear if Miwa also was an investor.

The group plans to invest between $10 million and $12 million into the bank, which will start with a single branch in Honolulu.

"A robust local economy and industry consolidation are certainly factors in the formation of new businesses, which includes new banks," said Nick Griffin, commissioner of the Division of Financial Institutions.

The bank would be based in Restaurant Row at the corner of Punchbowl and Pohukaina streets, the state application said.

Hawaii has trailed other Western states when it comes to providing banking options to its residents. Washington has 75 commercial banks and 23 savings institutions; Arizona has 45 commercial banks and four savings institutions; Oregon has 36 commercial banks and two savings institutions; and Nevada has 34 commercial banks and two savings institutions.

Rodney Shinkawa, executive vice president of the Hawaii Bankers Association, said he was heartened that a group is planning to start another financial institution. "That will be welcome competition to serve the public."

The state's other four commercial banks are First Hawaiian Bank, Bank of Hawaii, Central Pacific Bank and Hawaii National Bank. City Bank's parent company was absorbed by Central Pacific last September.

American Savings Bank and Territorial Savings Bank are based in Hawaii but are chartered as thrifts, while Finance Factors is technically a depository financial services loan company.

Former City Bank spokesman Wayne Miyao said Imamura came to City Bank as a consultant shortly before Central Pacific initiated its hostile takeover for the bank in early 2003.

"He's a career banker in the area of commercial lending, but he's well versed in all areas of credit administration," Miyao said. "He's very knowledgeable in loans and credit."

Getting noticed A group of local investors is seeking to start the fifth commercial bank in Hawaii. Name: Pacific Rim Bank Initial capital: $10 million to $12 million Coming up: The group must run a public notice in a newspaper three times. Public comments can be sent to Division of Financial Institutions, P.O. Box 2054, Honolulu, HI 96805; deadline is 15 days after the third notice runs.