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City Bank parent’s
net increases 23 percent

By Tim Ruel
Star-Bulletin

CB Bancshares Inc., parent of City Bank and International Savings & Loan, boosted first quarter net income 23 percent to $2.43 million from $1.98 million in the same period last year.

The company's stock, traded on the Nasdaq market, closed up 75 cents, or 3 percent, at $24. The stock is down about 18.5 percent so far this year.

Earnings per share at CB Bancshares rose 33.9 percent to 75 cents from 56 cents a year ago, the Honolulu-based company said yesterday.

Ronald K. Migita, president and chief executive, noted that the company has had success in streamlining its operations and increasing productivity.

Nonperforming loans plunged 34.7 percent to $13 million from $19.9 million, and assets rose 17 percent to $1.65 billion from $1.41 billion. The banking company reported a 7.9 percent increase in net interest income to $15.5 million, the difference between the interest it paid to attract deposits and what it made from interest charged on loans.

The change primarily came from an interest recovery of $480,000 on an unspecified nonperforming commercial loan.

CB runs 22 branches on Oahu, Maui and the big Island.

The company announced plans last year to merge City Bank and International Savings by the end of the second quarter, subject to regulatory approval.