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Central Pacific Bank
By Russ Lynch
parent’s profits rise 20.5%
Star-BulletinCPB Inc., parent of Central Pacific Bank, reported a 20.5 percent increase in its second-quarter profit today, saying it improved the quality of its loans and other assets and trimmed operating costs.
The company reported a net of $4.79 million for the three months through June 30, up from $3.98 million in the year-earlier quarter.
Per-share earnings rose 29.3 percent to 53 cents from a year-earlier 41 cents, with 9.4 percent fewer shares outstanding after a buyback of 438,000 shares.
The bank-holding company reduced its nonperforming assets, delinquent loans and restructured loans by 31 percent compared with the year-earlier quarter.
Total operating expenses were down 9.6 percent at $12.1 million, from a year-earlier $13.4 million.
The cuts included a 15 percent drop in the cost of salaries and employee benefits to $5.7 million from $6.8 million in the 1999 quarter.
With 26 branches statewide, Central Pacific Bank is the third-largest locally based bank, behind Bank of Hawaii and First Hawaiian Bank.
CPB ended the latest quarter with assets of $1.66 billion, up 5.1 percent from a year-earlier $1.58 billion. Deposits of $1.32 billion were 4.8 percent higher than $1.26 billion in June 30, 1999; and loans of $1.19 billion were up 2.6 percent from a year-earlier $1.16 billion.
The company left its quarterly dividend unchanged at 15 cents a share.
Changes during the latest quarter included the April introduction of Central Pacific's "financial network" financial planning program, the May start of a small-business assistance program called CPB Business Advantage and the June completion of installation of automated teller machines in the Tesoro gasoline stations.
CPB's thinly traded stock was unchanged today at $25.25 on the Nasdaq.
