Filed by Central Pacific Financial Corp.

Pursuant to Rule 425 of the Securities Act
of 1933, as amended, and deemed filed
pursuant to Rule 14d-2 and Rule 14a-12
under the Securities Exchange Act of
1934, as amended
Subject Company: CB Bancshares, Inc.
Commission File No. 0-12396

 

The following is an advertisement that Central Pacific Financial Corp. placed in newspapers in Hawaii on May 9, 2003 and posted on its website (www.cpbi.com) on May 9, 2003.

 

 

 

 

Text section of graphics shown above

 

 

 

AN OPEN LETTER

to shareholders, customers and the people of Hawaii.

 

Central Pacific Plaza

PO Box 3590

Honolulu, Hawaii 96811-3590                                                                                                       [Logo]

Telephone 808-544-0500                                                                                              Central Pacific Financial Corp

Fax Line 808-531-2875

 

As directors of Central Pacific Bank, we have proudly watched as this institution has grown in stature within the banking industry, both in Hawaii and on the mainland. This didn’t happen by accident. It is a direct result of sound and skillful management by Koichi Iida, Kazuo Ishii, Yoshiharu Satoh, Joichi Saito and now Clint Arnoldus. The search committee selected Clint as the CEO of Central Pacific Bank based upon his proven banking background of nearly 30 years and his relaxed and open management style. He is not a behind the desk guy but, rather, one who is out calling on customers, participating in community programs and interfacing with employees. Morale among customers and employees of the bank has never been so high. What a shame that he has become the lightning rod for the discussions concerning the proposed City Bank and Central Pacific Bank merger.

 

It is hard to discount the benefits that the coming together of these two institutions would bring to the community. Despite the war of words, both are local institutions, with local boards of directors. Both banks were founded for the same purpose and continue to serve the same market. Although that market has greatly expanded over the years, it is finite. There is no argument that we complement each other. Each bank has strengths that, combined, will bring far-reaching benefits to the entire State of Hawaii.

 

The Central Pacific Bank Board firmly believes that a merged bank is in the best interest of Hawaii. We are all keiki o ka aina. We assure you that we want to proceed in a manner that is both business-like and sensitive to the Island way of doing things. We would appreciate the opportunity to present this offer in its entirety without clouding the issue with matters that may not be relevant.

 

We appreciate the loyalty of our customers, employees and shareholders and we assure you that your Bank will not lose its focus on service to our customers as we look at opportunities for future growth and development.

 

With warmest aloha from Central Pacific Bank’s Board of Directors,

 

 

[Logo]		Central Pacific Bank
		Member FDIC	FIERCELY LOYAL BANKING
		cpbi.com

 

FORWARD LOOKING INFORMATION: This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, (i) statements about the benefits of a merger between Central Pacific Financial Corp. (“CPF”) and CB Bancshares, Inc. (“CBI”), including future financial and operating results, costs savings and accretion to reported and cash earnings that may be realized from such merger; (ii) statements with respect to CPF’s plans, objectives, expectations and intentions and other statements that are not historical facts; and (iii) other statements identified by words such as “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans”, “targets”, “projects” and other similar expressions. These statements are based upon the current beliefs and expectations of CPF’s management and are subject to significant risks and uncertainties. Actual results may differ may differ from those set forth in the forward-looking statements.

 

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the business of CPF and CBBI may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (2) expected revenue synergies and cost savings from the merger may not be fully realized or realized within the expected time frame; (3) revenues following the merger may be lower than expected; (4) deposit attrition, operating costs, customer loss and business disruption, including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers, may be greater than expected following the merger; (5) the regulatory approvals required for the merger may not be obtained on the proposed terms; (6) the failure of CPF’s and CBBI’s shareholders to approve the merger; (7) competitive pressures among depository and other financial institutions may increase significantly and may have an effect on pricing, spending, third-party relationships and revenues; (8) the strength of the United States economy in general and the strength of the Hawaii economy may be different than expected, resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on the combined company’s loan portfolio and allowance for loan losses; (9) changes in the U.S. legal and regulatory framework; and (10) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) and the impact of such conditions on the combined company’s activities.

 

Additional factors that could cause CPF results to differ materially from those described in the forward-looking statements can be found in CPF’s reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission and available at the SEC’s Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to CPF or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. CPF does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

 

With respect to financial projections for CBBI contained in this document, neither CBBI nor any analyst has published any information for 2003, 2004 or 2005. In addition, CPF has not been given the opportunity to do any due diligence on CBBI other than reviewing its publicly available information. Therefore, management of CPF has created its own financial model for CBBI based on CBBI’s historical performance and CPF’s assumptions regarding the reasonable future performance of CBBI on a stand-alone basis. These assumptions may or may not prove to be correct. The assumptions are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of CBBI. There is no assurance that these projections will be realized and actual results are likely to differ significantly from such projections.

 

On April 28, 2003, CPF filed with the SEC a registration statement on Form S-4 to register the CPF shares to be issued in a proposed exchange offer, and subject to future developments, CPF intends to file one or more proxy statements for solicitation of proxies from CPF shareholders, may file one or more proxy statements for solicitation of proxies from CBBI shareholders, in connection with special meetings of such shareholders at a date or dates subsequent hereto any may file a tender offer statement. The registration statement is not final and will be further amended. Investors and security holders are urged to read the registration statement and proxy statements (when available) and any other relevant documents, including the tender offer statement if filed, filed with the SEC, as well as any amendments or supplements to those documents, because they contain and will contain important information. Investors and security holders may obtain a free copy of the registration statement, any amendments thereto (when available) and proxy statements (when available) and other relevant documents, including the tender offer statement if filed, at the SEC’s Internet web site at (www.sec.gov). The registration statement, any amendments thereto and proxy statements (when available) and such other documents, including the tender offer statement if filed, may also be obtained free of charge from CPF by directing such request to: Central Pacific Financial Corp., 220 South King Street, Honolulu, Hawaii 96813, Attention: David Morimoto, (808) 544-0627.

 

CPF, its directors and executive officers and certain other persons may be deemed to be “participants” if CPF solicits proxies from CBBI and CPF shareholders. A detailed list of the names, affiliations and interests of the participants in any such solicitation will be contained in CPF’s preliminary proxy statement on Schedule 14A, when filed. Information about the directors and executive officers of CPF and their ownership of and interests in CPB stock is set forth in the proxy statement for CPF’s 2003 Annual Meeting of Shareholders.