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The Honolulu Advertiser

Posted at 12:18 p.m., Tuesday, January 25, 2005

Business briefs

Advertiser Staff

Central Pacific earnings up 44 percent

Central Pacific Financial Corp. today reported a 44 percent increase in the net income for the fourth quarter of 2004, buoyed by its merger with CB Bancshares.

The parent of Central Pacific Bank and City Bank earned $13.1 million, or 46 cents a share, compared with $9.1 million, or 55 cents a share, in the fourth quarter of 2003. Earnings per share figures fell even as net income rose because there were 75 percent more shares in the fourth quarter.

Operating income, which excludes merger-related expenses, was $16.4 million, or 57 cents a share, compared with $9.1 million, or 55 cents a share, in the prior year. Revenue came to $55.5 million compared with $25.8 million.

Central Pacific's operating income met Wall Street expectations of 57 cents a share, according to Thomson Financial.

Central Pacific Financial and CB Bancshares, the former parent of City Bank, merged on Sept. 15 2004. Their subsidiary banks will be combined in February.

Shares of Central Pacific rose by 31 cents today to close at $36.04.



Hawaiian Electric's credit rating unchanged

Standard & Poor's Ratings Services said today that Hawaiian Electric Industries Inc.'s postponement of its year-end and fourth quarter earnings release will not affect the rating or outlook on the company.

HEI, the parent of Hawaiian Electric Co. and American Savings Bank, on Monday said it postponed the earnings release because of a problem with its accounting. The problem had to do with how American Savings Bank amortized premiums and discounts on its mortgage-backed securities portfolio.

"Although nonconformance with accounting standards is of concern, because the range of the after-tax net premium amortization is expected to be relatively small at $2 million to $4 million, the understatement of net income will not materially affect the company's creditworthiness," S&P said in a news release. The matter is expected to be resolved during the next two weeks earnings will be reported on Feb. 7.