City Bank parent’s
net jumps 12.3%
Little said on buyout bid
By Dave Segal
CB Bancshares Inc., which said late yesterday it was examining an unsolicited $285 million cash-and-stock offer from rival CPB Inc., reported that first-quarter earnings increased 12.3 percent from a year ago.
The parent of City Bank had net income of $4 million, or $1.01 a share, compared with $3.5 million, or 91 cents a share, in the first quarter of 2002.
CB Bancshares said total assets at the end of March gained 7.5 percent to $1.66 billion from $1.54 billion. Total deposits increased 3.4 percent to $1.15 billion from $1.11 billion. And total loans slipped 1.9 percent to $1.16 billion from $1.18 billion.
The bank made strides in improving the quality of its loan portfolio as its nonperforming loans fell 24 percent to $11.7 million from $15.3 million and its nonperforming assets declined 35.4 percent to $12.4 million from $19.2 million. CB Bancshares also boosted its allowance for credit losses 41.1 percent to $31.2 million from $22.1 million.
"The significant improvement in the coverage of the allowance for credit losses to nonperforming loans reflects, in part, the continuing emphasis on reducing nonperforming loans," Ronald Migita, president and chief executive officer of CB Bancshares, said in a statement.
CB Bancshares' return on equity, which measures how well it used reinvested earnings to generate additional earnings, slipped to 10.54 percent from 10.63 percent. Its efficiency ratio, which measures how much it costs the bank to make a dollar of revenue, worsened slightly to 56.98 percent from 56.53 percent.
Net interest margin, the difference between what the bank earns on loans and investments and the interest it pays on deposits, fell to 4.76 percent from 5.36 percent.
Central Pacific Bank