City Bank parent’s
profits rise 10 percent

CB Bancshares earns $3.3 million
during the 3rd quarter

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By Rick Daysog
rdaysog@starbulletin.com

The parent company of City Bank reported a 10.2 percent increase in earnings for the third quarter.

CB Bancshares Inc. posted net income of $3.3 million for the three months ended Sept. 30 up from about $3 million in the year-earlier quarter.

On a per-share basis, the company earned 91 cents during the latest third quarter, up 7.1 percent from 85 cents in the same quarter of 2000.

For the first nine months this year, CB said it netted $9.3 million, or $2.60 per share, compared to $8.2 million, or $2.31 per share, last year.

During the quarter, the company's net interest income increased 22.4 percent to $19.1 million from third-quarter 2000's $15.5 million.

The company said the higher interest income reflected increased loan volume and lower interest rates.

CB Bancshares listed total of assets of $1.7 billion as of Sept. 30, a 1 percent decline from a year earlier.

The company's total loans rose 1.8 percent to $1.3 billion while deposits slipped 0.2 percent to $1.2 billion.

CB Bancshares said it increased its provisions for credit losses to $3.7 million, or more than double the previous third quarter's $1.5 million.

The move is in anticipation of further economic weakness in Hawaii brought on by the Sept. 11 terrorist attacks, the company said.

Bank managers said they believe the additional allowance is adequate to cover potential credit losses in the coming months.

CB Bancshares' subsidiary City Bank operates 21 branches on Oahu, Maui and the Big Island.

During the quarter, City Bank began offering investment products such as stocks, bonds and mutual funds in partnership with UVEST Investment Services of North Carolina.