Posted on: Tuesday, February 22, 2005
City Bank a thing of the past
By Andrew Gomes
Advertiser Staff Writer
After 46 years in business, City Bank is no more. The Hawai'i bank today reopens under the Central Pacific Bank name, completing one of the last integration steps after Central Pacific Financial Corp.'s acquisition of its former rival in a September stock merger.
Bruce Asato • The Honolulu Advertiser O'ahu: Merchant Street, Bishop Street, Waipahu Big Island: Hilo, Kona Maui: Kahului, Kihei Kaua'i: Lihu'e Central Pacific branch closed: Kailua, O'ahu New branch opened: Wailuku, Maui One Central Pacific branch was closed, and the company opened a new branch in Wailuku, Maui, resulting in a total reduction from 45 to 37 branches for the combined banks.
Central Pacific used the long Presidents Day holiday weekend to make the conversion as seamless as possible for customers of City Bank branches, some of which also received new paint and other upgrades.
Company spokeswoman Ann Takiguchi Marcos declined to disclose the fate of City Bank's signature advertising symbol, the teal bench, which became a fixture in some bank branches. Central Pacific plans to discuss the changeover at a blessing ceremony today.
Though one of the most noticeable changes is done, the challenge ahead for Central Pacific is to operate integrated bank systems and achieve projected savings from consolidation.
The company projected saving $13 million this year, and $19 million a year thereafter, largely from reducing overlapping operations and personnel.
Central Pacific said it would make no involuntary layoffs, and about 100 employees voluntarily departed the company in return for severance benefits.
The bank also pledged to open as many branches as it closes, subject to securing adequate locations.
But Central Pacific cautioned in a regulatory filing earlier this month that its projected cost savings may not be achieved or achieved in a timely fashion because merger costs may be higher than anticipated and because some plans have changed.
For example, Central Pacific said it anticipated closing City Bank's loan production offices in California, but later decided to keep and expand the offices. Other consolidation assumptions the company did not describe in the filing also have become "inapplicable."
In the filing, a Feb. 11 registration statement for selling more stock, Central Pacific also noted that consolidating bank branches could result in the loss of significant customer deposits and revenues, or that there could be other unforeseen difficulties integrating the banks.
The company expects it will be able to increase deposits by cross-selling its combined line of products and services to a larger customer base.
Other areas of anticipated growth for the bank are wealth management, online banking, equipment leasing and residential mortgage lending in Hawai'i, as well as lending in California and Washington.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
Fourteen City Bank branches were converted yesterday, while eight were closed. Also converted to the Central Pacific brand were City Bank ATMs and Internet banking services.
Kay Tannahill watches the installation of the new Central Pacific Bank sign on the City Bank Building on South Beretania Street near Ke'eaumoku Street. Tannahill, who worked for City Bank, has become a Central Pacific Bank business banking officer.
City Bank branches closed
