CB Bancshares profits up 10.2% in 3rd quarter
By Frank Cho
Advertiser Staff Writer
CB Bancshares Inc., Hawai'i's fourth-largest bank holding company, said third-quarter profits climbed 10.2 percent on higher fee income and gains from the sale of securities and loans.
CB Bancshares, parent company of City Bank, yesterday said net income for the quarter ended Sept. 30 rose to $3.3 million, or 91 cents a share, from $3 million, or 85 cents, in the same year-earlier period.
Helping the bank's bottom line during the third quarter was City Bank's offering of investment services through a partnership with UVEST Investment Services, a North Carolina company that offers services to more than 150 financial institutions nationwide.
Total interest income declined by nearly $2.5 million during the third quarter. But the bank made up for that drop by reducing interest expenses nearly $6 million.
City Bank's parent company reported net interest income for the quarter was $19 million, up 22.4 percent from $15.5 million in 2000, reflecting a higher net interest margins and a rise in outstanding loans.
Noninterest income jumped 33.2 percent to $3.6 million, up from $2.7 million a year ago. CB Bancshares attributed the increase to higher fee income from increased business volume and net gains on the sale of securities and loans.
Nonperforming assets at the end of September fell 4.6 percent from the previous month to $20.5 million, primarily because of a reduction in real estate owned. Compared to the same period last year, the bank's nonperforming assets were up 0.6 percent.
Provisioning for credit losses was $3.7 million at the end of the third quarter, more than double what it was at the same time last year. Many banks in Hawai'i and on the Mainland have been provisioning for loan losses as the U.S. economy slows, bankers said.
"Management has been taking proactive steps to increase the provision for credit losses in anticipation of the slowing Hawai'i economy, which was further exacerbated by the Sept. 11 terrorist attack," the company said in a statement.
Total assets declined slightly in the third quarter to $1.7 billion, down 1 percent from a year ago. Total deposits were down 0.2 percent to $1.2 billion and loans were up 1.8 percent to $1.3 billion.