CB Bancshares
in Russell 2000
market index

The City Bank parent joins
CPB Inc. and Alexander & Baldwin

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By Lyn Danninger
ldanninger@starbulletin.com

CB Bancshares Inc., Hawaii parent of 20-branch City Bank, has been added to the small cap Russell 2000 Index.

The addition took place June 28 as part of the index's annual adjustments.

CB Bancshares joins other Hawaii companies listed on the index run by the Tacoma, Wash.-based Frank Russell Co., Alexander & Baldwin Inc. and Central Pacific Bank parent CPB Inc.

Membership in Russell indexes is determined by market capitalization rankings and style attributes rather than an analyst or committee's subjective opinion.

Russell indexes are widely used by managers for index funds and as benchmarks for investment strategies.

CB Bancshares posted a 26 percent increase in its first-quarter profit this year. Its second-quarter earnings results are expected July 18.

For the first quarter, the company reported net income of $3.5 million, or $1.01 a share, for the first three months through March 31, compared to a net of $2.8 million, or 80 cents a share a year earlier.

CB Bancshares President and Chief Executive Officer Ronald Migita said the inclusion means that Wall Street recognizes the company's efforts to increase shareholder value.

"While we are honored by the recognition, we intend to work even harder to maintain the trust and confidence of investment managers, as well as our shareholders," he said.

CB Bancshares, with a market capitalization of $136.51 million, is among the smaller companies on the broad small cap index. The median company, Apogee Enterprises Inc., lists a market cap of $395.3 million. The smallest, Tasty Baking Co., has a $128.1 million capitalization.

Among the other Hawaii stocks in the index, A&B has a market cap of about $1 billion. CPB is capitalized at about $312 million.

So far this year, CB Bancshares stock has gained 10.35 percent. But it closed down 35 cents today at $35. The Russell 2000 lost 3.09 on Wall Street today, closing at 416.69. The index is down more than 14 percent so far this year.