City Bank parent's profit doubles

By Andrew Gomes
Advertiser Staff Writer

•	CB Bancshares 3rd quarter earnings: Net income: $5.5 million, up 103.7 percent Total assets: $1.8 billion, up 15 percent Net interest margin: 4.84 percent versus 5.27 percent a year ago

CB Bancshares reported $5.5 million in net income for the three months ended Sept. 30, a 103.7 percent increase over $2.7 million during the same period last year.

The earnings include $1.9 million in expenses to defend Central Pacific's unsolicited acquisition bid, which is being dragged out with several legal disputes and is being evaluated by government regulators.

CB Bancshares stock remained unchanged yesterday, closing at $62 per share before the earnings announcement.

Ronald Migita, CB Bancshares president and chief executive officer, said Hawai'i mortgage banking and California lending operations were significant contributors to improved returns.

Net interest income for the quarter was up $1.2 million to $20.4 million, compared with the year-ago quarter. Noninterest income for the same period was up $3.4 million to $5 million, reflecting the sale of securities.

On a per-share basis, CB Bancshares profit was $1.25 for the quarter, compared with 62 cents for the same three-month period last year.

For the first nine months of the year, the bank holding company reported net income of $13.9 million, a 40.5 percent increase over $9.9 million for the same year-ago period. Expenses to defend the takeover announced in mid-April totaled $6.2 million through September.

Central Pacific said last week that it borrowed $40 million to help pay for the proposed merger, which is expected to cost $288 million, of which 35 percent would be in cash and the rest in stock.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.