CPB Inc. reports profits up 20.5 percent

By Frank Cho
Advertiser Staff Writer

Central Pacific Bank's parent company said second-quarter profits jumped 20.5 percent from the same period a year ago, reaching an eighth-consecutive quarterly record on higher fee and interest income.

Earnings at CPB Inc., the state's third-biggest bank holding company in terms of assets, rose to $5.8 million, or 70 cents a share, for the three months that ended June 30, from $4.8 million, or 53 cents a share, a year earlier.

Nonperforming loans fell 28 percent during the quarter.

"We have always had a high priority and strong focus on asset quality, which is reflected in our solid earnings performance," said Joichi Saito, CPB's chairman and chief executive officer.

CPB's stock price fell two cents yesterday to close at $29.50 before the company released its earnings. Trading totaled just 500 shares yesterday, a fraction of the stock's daily average of about 4,000 shares.

During the quarter, CPB moved its Kailua branch into the Daiei store on Hahani Street, its sixth supermarket branch, and added automatic tellers to expand its ATM network to 77.

Total assets increased 8 percent to $1.8 billion. Deposits rose by 6.3 percent to $1.4 billion and loans increased 3.1 percent to $1.2 billion.

The bank's board of directors increased its dividend paid to shareholders to 16 cents, up 6.7 percent from a year ago.

For the first half of the year, the company reported net income of $11.1 million, up 18.4 percent over the $9.4 million it earned during the same period a year ago.

On a per-share basis, the company said it earned $1.33 cents a share, up 29.1 percent from $1.03 in the same period in 2000.

Shares outstanding declined 6.3 percent during the same period to 8.2 million shares from 8.8 million a year ago.

Reach Frank Cho at fcho@honoluluadvertiser.com or 525-8088.