CB Bancshares netStar-Bulletin staff
CB Bancshares Inc., the parent of City Bank and International Savings & Loan, had a 61.6 percent increase in fourth-quarter profit, as the company cut wage and benefits costs through voluntary staff departures.
The company reported a profit of $2.13 million for the three months through Dec. 31, compared with a $1.32 million profit for the year-earlier quarter. Expenses for salaries and employee benefits were down $880,000, or 14.3 percent, at $5.28 million from $6.16 million in the 1997 quarter.
The bank-holding company's net interest income, after providing for loan losses, was down $121,000, or 9.6 percent, at $11.39 million vs. $12.6 million in the year-earlier quarter.
At the end of 1998, CB Bancshares had assets of $1.43 billion, down slightly from $1.44 billion at the end of 1997.
Net loans of $961.92 million were down from $1.05 billion a year earlier. Deposits of $1.08 billion were up from $1.01 billion.
The company said it increased its reserve for possible loans losses in 1998 because of the continuing weakness in Hawaii's economy. At year-end, the company had $17.8 million set aside for loan losses, 1.65 percent of its outstanding loans, compared with $16.4 million, or 1.52 percent of total loans, at the end of 1997.