Shareholders approve bank merger

Shareholders of the parent companies of both Central Pacific Bank and City Bank today approved the merger of the two companies, essentially closing the books on one the most contentious and high-profile business deals in Honolulu history. Approximately 81.3 and 80.3 percent of issued and outstanding shares of Central Pacific Financial Corp. and CB Bancshares, Inc., respectively, voted for the merger. “Today marks a historic step forward and we are focused on strengthening our position in this highly competitive market, building the best community bank serving Hawaii,” Central Pacific president and CEO Clint Arnoldus said today. The merger is scheduled to close on Wednesday.

“We sincerely appreciate our shareholders’ support and look forward to building a combined bank that will deliver added value to both new and longstanding shareholders of CPF as well as the customers, employees and communities that we will serve,” said CB Bancshares head Ronald Migita.

Central Pacific Financial Corp. will be the surviving corporation and will operate two bank subsidiaries, Central Pacific Bank and City Bank, until it merges the banks under the Central Pacific name.

Arnoldus will lead the combined company, while Migita will serve as Chairman of the Board.

Ultimately, Central Pacific plans to consolidate bank branches in overlapping areas and begin opening new branches in under-served areas of Hawaii.

“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,” said Arnoldus.