Tuesday, October 12, 1999

Central Pacific
parent posts best
quarter in history

The $4.3 million gain is
bankrolled by increased loans and
deposits and a reduction in staffing

By Russ Lynch


Central Pacific Bank CPB Inc., the parent of Central Pacific Bank that is restructuring to cut costs, today reported its highest quarterly profit in the company's 45-year history.

The bank-holding company said it had a third-quarter profit of $4.3 million, up 10.3 percent from $3.9 million in the year-earlier quarter. The per-share profit of 44 cents for the quarter ending Sept. 30 was up 15.8 percent from 38 cents a year ago because the company had fewer shares outstanding after a stock buy-back program.

Honolulu-based CPB said the profit was partly due to increased net interest income, achieved through a higher volume of loans and deposits, and a larger interest spread, the difference between the income from lending money and the cost of borrowing it.

Art In August, CPB announced a restructuring plan designed to improve efficiencies that would cut about 10 percent of its nearly 600 jobs over the next three years.

In today's earnings announcement, CPB said a reduction in staff and income from fees also helped boost its bottom line. Nonperforming and delinquent loans were down 28.2 percent at $17.1 million, from a year-earlier $23.8 million.

At the end of September, CPB had assets of $1.6 billion, up 5.3 percent from $1.52 billion a year earlier. Deposits of $1.26 billion were up 5.9 percent from $1.19 billion at the end of the 1998 quarter, and net loans of $1.14 billion were up 9.6 percent from $1.04 billion. Central Pacific Bank is the third largest bank in the state, behind the Bank of Hawaii and First Hawaiian Bank.

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