Posted on: Friday, April 19, 2002

CB Bancshares profits up 26%

Advertiser Staff

CB Bancshares Inc., Hawai'i's fourth-largest bank holding company, said first-quarter profits climbed 26.2 percent because of lower interest rates and higher fee income.

CB Bancshares, parent company of City Bank, said net income for the quarter ended March 31 rose to $3.5 million, or $1.01 a share, from $2.8 million, or 80 cents, in the year-earlier period.

The bank, which operates 21 branches in the state, said the boost in earnings was mostly because of an improvement in the interest margin, the difference between the rates at which the bank borrows money and the rates at which it lends that money out. The margin increased to 5.38 percent, the bank said. That resulted in $19.4 million in net interest income, up 23 percent from the same period a year ago.

The bank's noninterest income, mostly from service charges and fees, was $4 million, up 22 percent from a year earlier.

While profits rose, the bank's assets fell to $1.5 billion, down 10.8 percent from a year earlier. Its loans totaled $1.2 billion, down 9.8 percent. Deposits were also down, falling 11.7 percent to $1.1 billion.

"We continue to show improvement in the efficiency ration as a result of higher net interest income and noninterest income and our ongoing focus to streamline operations," Ronald K. Migata, president and CEO, said in a statement.