City Bank parent CB Bancshares Inc. today posted net income of $2.7 million, or 69 cents a share, in the third quarter after posting a loss of $676,000, or 18 cents a share, a year ago. City Bank parent earns
$2.7 million in quarterStar-Bulletin staff
The company took a $951,000 impairment charge due to a write-down of securities backed by a pool of commercial loans.
CB Bancshares, which plans to open City Bank's first branch on Kauai next month, said operating earnings excluding the after-tax effect of the impairment charges were $3.7 million, or 92 cents a share, an 11.4 percent increase from $3.3 million, or 85 cents a share, in the third quarter of 2001.
In last year's third quarter, the company took a $6.6 million noncash charge, or after-tax charge of $4 million, to write down to estimated fair market value three collateralized loan obligations that totaled $22.1 million.
CB Bancshares said its assets, loans and deposits all fell in the third quarter from a year ago. The company's assets of $1.6 billion were down 5 percent from $1.7 billion. Loans of $1.1 billion were off 13.3 percent from $1.3 billion. And deposits of $1.1 billion slipped 2.9 percent from $1.2 billion.
Net interest income, which is the difference between interest income on earnings assets and the interest expense on interest-bearing liabilities, improved 1.1 percent to $19.2 million from a year ago. Noninterest income, which includes revenue from service charges and fees, slipped 0.3 percent to $3 million from a year ago but was up 16.5 percent through the first nine months compared with the corresponding period last year.
The provision for credit losses in the third quarter was raised to $4 million from $3.7 million a year ago due to the continued economic uncertainty both locally and nationally.
CB Bancshares' nonperforming loans in the quarter fell 9.8 percent to $15.3 million from a year ago and its nonperforming assets declined 18.6 percent to $16.7 million from the same period a year ago.
Shares of the company rose 75 cents to close at $39.25. It is up 22.5 percent for the year.