Bank enlists 'ideal leader'
By Katherine Nichols
Advertiser Staff Writer
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| ARNOLDUS: Sweeping changes not anticipated |
Clinton L. Arnoldus, 54, will succeed Naoaki Shibu-ya, who was appointed vice chairman of Central Pacific Bank.
Arnoldus, who has 28 years of banking experience, will also assume the positions of chairman, president and chief executive officer of CPB Inc. in April, replacing Joichi Saito.
"After conducting an extensive national search for the past year and a half, we are pleased to announce that we have found the ideal lead-er," said Paul Devens, board director of CPB Inc. and Central Pacific Bank, and vice chairman of the bank's search committee.
This is the first time in the institution's history that it will not be led by someone of Japanese ancestry, indicating an expansion in the bank's targeted market.
"The board is very aware of the founding of this bank as one that was an ethnic-oriented bank," Devens said. "At that time it was basically serving nisei — second generation, first (Japanese Americans) born in the U.S. We've now expanded to fourth and fifth generation ... so a lot of people in that ethnic group are more interested in the quality of service you render: What are your interest rates and how do they compare with the competitor?
"So we've expanded even within the ethnic group, always mindful of those who gave it it's start. And now we're seeing an opportunity to expand into other groups."
The way the bank plans to do this is by "basically being more agile," Devens said. That means aggressively pursuing new clients, providing excellent service and becoming more familiar with the market, he said.
"Banking is a trust relationship. ... So it's in that area that we think we can give the big boys a run for their money," he said.
Arnoldus said yesterday that he believes his own management skills augment the goals of providing efficient personal service.
"I have a very high-touch style," he said. "My philosophy is that I don't make a lot of money for the company sitting at my desk. I intend to spend two to three days a week in the market myself. Our customers will know me personally. They will know our organization from top to bottom. In doing that, we can be the most proactive bank."
Saito said of the bank's new leader: "Clint Arnoldus brings with him a proven track record in banking leadership and a fresh, new perspective. I'm looking forward to working together to ensure a smooth transition. As my eventual successor, I'm confident that Clint Arnoldus will continue CPB's commitment in serving our local community."
Devens added with a chuckle: "We were hoping to find a June Jones out there. And we think we did. The June Jones of banking."
In October, CPB Inc. reported its ninth-consecutive quarter of record earnings with a 78 percent increase in third-quarter net income. The bank increased its fourth-quarter dividend by a penny to 18 cents a share.
The upturn began with a major reorganization in mid-1999, when Central Pacific Bank's work force was reduced from 600 to 500. The bank's original three-year plan was accomplished in two.
"And today," said Saito, "we are a much leaner and stronger financial institution."
Arnoldus does not plan to alter this essential formula. "My job as the leader of this bank will be to enhance shareholder value, and we'll always be looking for ways to do that. But I don't anticipate that meaning sweeping changes in an already successful organization."
Arnoldus most recently served as chairman, president and chief executive of Pasadena, Calif.-based Community Bank. Before that, from 1993 to 1996, he was chairman and chief executive officer of First Interstate Bank of Nevada.
He received his master's degree from the American Graduate School of International Management-Thunderbird in Glendale, Ariz.
CPB Inc. is a Hawai'i bank holding company with $1.8 billion in assets. Central Pacific Bank, its subsidiary, has 24 branches statewide, including six supermarket branches.
