1st quarter profitable for both institutions
| • | Bank chiefs trade barbs as competition heats up |
| • | City Bank stock jumps after takeover bid revealed |
Advertiser Staff
Central Pacific Bank and City Bank reported double-digit profit growth in the first quarter as they released separate earnings statements yesterday.
CPB Inc., the parent company of Central Pacific Bank, reported that first-quarter net income grew 14 percent to $8.6 million, or 52 cents per diluted share, from the $7.5 million, or 47 cents per share, posted during the same period last year.
CB Bancshares, parent of City Bank, said its net income rose 12.3 percent to $4.0 million, or $1.01 per share, compared with $3.5 million or, 91 cents per share, a year ago.
On Wednesday, Central Pacific Bank, the state's fourth-largest financial institution, made an unsolicited offer to buy City Bank, the fifth largest, for about
$285 million or $70 per City Bank share. City Bank CEO Ronald Migita said yesterday the bank was evaluating the proposal and urged shareholders to take no action.
CPB Inc. Chairman Clint Arnoldus said his bank's first-quarter earnings growth "further supports our proposal to combine CPB Inc. with CB Bancshares Inc."
Both banks warned that uncertainties facing the Hawai'i economy cloud the outlook for profits.
"We remain cautiously optimistic due to the continued global instability and conflicts in the Middle East and Asia and its impact on the Hawai'i economy," Migita said.
Arnoldus said the "geopolitical situation and the outbreak of the SARS virus in Asia" would restrain economic activity in the state. As a result CPB lowered its target earnings per share growth for 2003 to "the 6 to 10 percent range" from its forecast in January of 10 percent to 12 percent growth.
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