CB Bancshares, Inc. Reports a 15.1% Increase in First Quarter Results

Apr 19, 2001, 01:00 ET from CB Bancshares, Inc.

    HONOLULU, April 19 /PRNewswire/ -- CB Bancshares, Inc. (Nasdaq:   CBBI),
 parent company of City Bank, reported net income of $2.80 million for the
 quarter ended March 31, 2001, an increase of 15.1% over the $2.43 million
 reported for the same quarter last year.  Diluted earnings per share increased
 10.7% to $0.83 over the same quarter last year.
     Net interest income was $15.8 million for the first quarter of 2001, an
 increase of 6.9% over the first quarter of 2000, excluding a one-time interest
 recovery of $480,000 on a certain nonperforming loan in the first quarter of
 2000.  The increase was due to an increase in outstanding loans of
 $109.4 million, or 9.1%.
     Noninterest income was $3.1 million for the first quarter of 2001, an
 increase of 81.6% over the year-ago quarter primarily due to: (1) a $409,000
 increase in service charges and fees; (2) a $387,000 gain on the sales of
 investment securities; and (3) a $437,000 loss on sales of investment
 securities in the first quarter of 2000.
     Noninterest expense was $12.1 million in the first quarter of 2001, an
 increase of 8.5% compared to the first quarter of 2000.  The increase was
 primarily due to: (1) higher incentive-based compensation related to the
 growth in loans and deposits; and (2) a $300,000 software settlement that was
 received in the first quarter of 2000 which reduced equipment expense.  The
 efficiency ratio (exclusive of the amortization of goodwill and other
 intangibles) improved from 64.93% for the first quarter of 2000 to 63.27% for
 the first quarter of 2001.
     During the first quarter, a new corporate positioning program for City
 Bank was initiated.  The "teal bench" campaign promoting a new slogan, "It's
 worth it to switch", is directed at the small business market in Hawaii.
 Ronald K. Migita, President and Chief Executive Officer of CB Bancshares, Inc.
 said, "With this new campaign, we are committing ourselves to strengthening
 our relationships with our existing customers while creating and building
 partnerships with new customers."
     "We believe that we have created an exciting new image for City Bank and
 we are enthusiastic about the results to date", continued Migita.  "We are
 marketing the City Bank name and brand as never before.  We are backing this
 effort by a concerted sales and services focus throughout our entire bank."
     Compared to March 31, 2000, at March 31, 2001, the Company had
 $1.7 billion in assets, up 4.9%; $1.3 billion in deposits, up 10.0%; and
 $1.3 billion in loans, up 9.1%.
     Nonperforming loans and assets were $17.4 million and $20.1 million,
 respectively at March 31, 2001, which represented increases of $2.3 million,
 or 14.9%, and $1.6 million, or 8.4%, respectively, as compared to December 31,
 2000.  The increase in nonperforming loans was primarily due to an increase in
 the commercial category, partially offset by a decrease in the residential
 real estate category.  As compared to March 31, 2000, nonperforming loans and
 assets increased $4.3 million, or 32.9%, and $1.3 million, or 6.7%,
 respectively.
     The provision for credit losses was $2.8 million in the first quarter of
 2001, up from $1.9 million in the prior year's first quarter.  The increase in
 the provision for credit losses was primarily related to the increase in
 charge-offs and nonperforming loans.  Management believes the allowance for
 credit losses is adequate as of March 31, 2001 and that the Company's future
 levels of nonperforming loans and related charge-offs will be reflective of
 Hawaii's economy.
     At March 31, 2001, total stockholders' equity was $127.9 million, or 7.4%
 of total assets.  At March 31, 2001, the Company's common stock traded at
 approximately 84% of its book value per share.
     City Bank provides a full range of banking products and services for
 small- and medium-sized businesses and retail customers through its
 21 branches on the islands of Oahu, Maui and Hawaii.
     This press release contains forward-looking statements that involve risks
 and uncertainties, including those related to CB Bancshares, Inc.'s
 expectations regarding financial results, the costs and expenses of
 transactions discussed herein and information contained in this document where
 statements are preceded by, followed by or include the words "believes,"
 "plans," "intends," "expects," "anticipates" or similar expressions.  For such
 statements, CB Bancshares, Inc. claims the protection of the safe harbor for
 forward-looking statements contained in the Private Securities Litigation
 Reform Act of 1995.  Additional factors that could cause actual results to
 differ from those contained in the forward-looking statements include those
 set forth in CB Bancshares, Inc. Annual Report on Form 10-K for the year ended
 December 31, 2000 which has been filed with the Securities and Exchange
 Commission.
 
 
                         CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                            At or for the Quarter Ended
                              March 31, 2001 and 2000
                                                               Change
                               2001         2000          Amount      Percent
 
            (dollars in thousands, except number of shares and per share data)
 
     QUARTER ENDED MARCH 31:
      Net income             $2,801        $2,434         $367          15.1%
      Cash earnings (1)       2,950         2,525          425          16.8
      Per share data:
       Diluted:
         Earnings              0.83          0.75         0.08          10.7
         Cash (1)              0.88          0.78         0.10          12.8
       Cash dividends          0.10          0.07         0.03          42.9
       Average shares
        outstanding (6)   3,359,045     3,251,738      107,307           3.3
 
     AT MARCH 31:
      Balance sheet:
       Total assets      $1,728,315    $1,648,167      $80,148           4.9%
       Loans              1,305,450     1,196,047      109,403           9.1
       Deposits           1,255,008     1,140,459      114,549          10.0
       Stockholders'
        equity              127,942       116,752       11,190           9.6
 
      Asset quality:
       Nonperforming loans   17,384        13,081        4,303          32.9
       Nonperforming
        assets (4)           20,142        18,884        1,258           6.7
       Allowance for credit
        losses               16,469        18,630       (2,161)        (11.6)
 
      Per share data:
       Book value             40.11         36.06         4.05          11.2
       Market value           33.75         23.75        10.00          42.1
 
      Balance sheet
       averages:
        Total assets     $1,720,048    $1,610,439     $109,609           6.8%
        Loans             1,302,216     1,170,129      132,087          11.3
        Earning assets    1,641,091     1,524,855      116,236           7.6
        Deposits          1,233,232     1,106,482      126,750          11.5
        Stockholders'
         equity             125,552       115,722        9,830           8.5
 
     SELECTED FINANCIAL RATIOS:
      Return on average:
       Total assets (2)        0.66%          0.61%
       Stockholders'
        equity (2)              9.05         8.46
       Tangible stockholders'
        equity (2), (3)         9.62         8.92
      Net interest margin (2)   3.96         4.08
      Efficiency ratio (5)     63.27        64.93
      Nonperforming loans to
      total loans
      (at March 31)             1.33         1.09
      Nonperforming assets to
       total assets
       (at March 31) (4)        1.17         1.15
      Allowance for credit
       losses to total loans
       (at March 31)            1.26         1.56
      Allowance for credit
       losses to nonperforming
       loans (at March 31)     94.74       142.42
 
     Notes:
      (1)  Excludes amortization of intangibles.
      (2)  Annualized.
      (3)  Defined as cash earnings as a percentage of average stockholders'
           equity minus average intangibles.
      (4)  Nonperforming assets consist of nonperforming loans and other real
           estate owned.
      (5)  Defined as noninterest expense minus amortization of intangibles as
           a percentage of total operating revenue.
      (6)  Includes common stock equivalents of 169,978 shares for the quarter
           ended March 31, 2001.
 
 
      CONSOLIDATED BALANCE SHEETS
       CB Bancshares, Inc. and Subsidiaries
       (Unaudited)
 
 
                                                     March 31,      March 31,
     (in thousands)                                    2001           2000
 
     ASSETS
     Cash and due from banks                          $35,696        $43,111
     Interest-bearing deposits in other banks           1,010             81
     Federal funds sold                                21,560         14,900
     Investment securities:
      Available-for-sale                              280,963        313,462
      Restricted                                       32,949         32,254
     Loans held for sale                               49,716          4,808
     Loans, net                                     1,239,265      1,172,609
     Premises and equipment                            18,576         17,679
     Other assets                                      48,580         49,263
 
     Total assets                                  $1,728,315     $1,648,167
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Deposits:
      Non-interest bearing                           $128,502       $118,188
      Interest bearing                              1,126,506      1,022,271
       Total deposits                               1,255,008      1,140,459
     Short-term borrowings                             75,700        148,500
     Other liabilities                                 18,227         17,383
     Long-term debt                                   244,438        225,073
     Minority interest in consolidated subsidiary       7,000             --
       Total liabilities                            1,600,373      1,531,415
 
     Stockholders' equity:
      Preferred stock                                      --             --
      Common stock                                      3,190          3,238
      Additional paid-in capital                       54,621         55,785
      Retained earnings                                74,767         64,365
      Accumulated other comprehensive income (loss),
       net of tax                                      (4,636)        (6,636)
 
       Total stockholders' equity                     127,942        116,752
 
     Total liabilities and stockholders' equity    $1,728,315     $1,648,167
 
 
      CONSOLIDATED STATEMENTS OF INCOME
       CB Bancshares, Inc. and Subsidiaries
       (Unaudited)
 
                                                  Three months ended March 31,
     (in thousands)                                    2001            2000
 
     Interest income:
      Interest and fees on loans                      $28,139        $24,917
      Interest and dividends on investment securities:
       Taxable interest income                          5,036          5,229
       Nontaxable interest income                         388            384
       Dividends                                          520            527
      Other interest income                               178            148
        Total interest income                          34,261         31,205
 
     Interest expense:
      Deposits                                         13,086         10,328
      Short-term borrowings                             2,242          2,179
      Long-term debt                                    3,131          3,441
       Total interest expense                          18,459         15,948
       Net interest income                             15,802         15,257
     Provision for credit losses                        2,750          1,906
       Net interest income after provision for credit
        losses                                         13,052         13,351
 
     Noninterest income:
      Service charges on deposit accounts                 834            646
      Other service charges and fees                    1,139            918
      Net realized gains (losses) on sales of securities  387           (437)
      Net gains on sales of loans                         162            140
      Other                                               591            447
       Total noninterest income                         3,113          1,714
 
     Noninterest expense:
      Salaries and employee benefits                    5,866          4,934
      Net occupancy expense                             1,592          1,845
      Equipment expense                                   816            501
      Other                                             3,843          3,888
       Total noninterest expense                       12,117         11,168
 
       Income before income taxes                       4,048          3,897
     Income tax expense                                 1,247          1,463
       NET INCOME                                      $2,801         $2,434
 
     For further information, please contact Dean Hirata, Senior Vice President
 and Chief Financial Officer of CB Bancshares, Inc., 808-535-2583; or Wayne
 Miyao, Senior Vice President of City Bank, 808-535-2590.
 
 

SOURCE CB Bancshares, Inc.
    HONOLULU, April 19 /PRNewswire/ -- CB Bancshares, Inc. (Nasdaq:   CBBI),
 parent company of City Bank, reported net income of $2.80 million for the
 quarter ended March 31, 2001, an increase of 15.1% over the $2.43 million
 reported for the same quarter last year.  Diluted earnings per share increased
 10.7% to $0.83 over the same quarter last year.
     Net interest income was $15.8 million for the first quarter of 2001, an
 increase of 6.9% over the first quarter of 2000, excluding a one-time interest
 recovery of $480,000 on a certain nonperforming loan in the first quarter of
 2000.  The increase was due to an increase in outstanding loans of
 $109.4 million, or 9.1%.
     Noninterest income was $3.1 million for the first quarter of 2001, an
 increase of 81.6% over the year-ago quarter primarily due to: (1) a $409,000
 increase in service charges and fees; (2) a $387,000 gain on the sales of
 investment securities; and (3) a $437,000 loss on sales of investment
 securities in the first quarter of 2000.
     Noninterest expense was $12.1 million in the first quarter of 2001, an
 increase of 8.5% compared to the first quarter of 2000.  The increase was
 primarily due to: (1) higher incentive-based compensation related to the
 growth in loans and deposits; and (2) a $300,000 software settlement that was
 received in the first quarter of 2000 which reduced equipment expense.  The
 efficiency ratio (exclusive of the amortization of goodwill and other
 intangibles) improved from 64.93% for the first quarter of 2000 to 63.27% for
 the first quarter of 2001.
     During the first quarter, a new corporate positioning program for City
 Bank was initiated.  The "teal bench" campaign promoting a new slogan, "It's
 worth it to switch", is directed at the small business market in Hawaii.
 Ronald K. Migita, President and Chief Executive Officer of CB Bancshares, Inc.
 said, "With this new campaign, we are committing ourselves to strengthening
 our relationships with our existing customers while creating and building
 partnerships with new customers."
     "We believe that we have created an exciting new image for City Bank and
 we are enthusiastic about the results to date", continued Migita.  "We are
 marketing the City Bank name and brand as never before.  We are backing this
 effort by a concerted sales and services focus throughout our entire bank."
     Compared to March 31, 2000, at March 31, 2001, the Company had
 $1.7 billion in assets, up 4.9%; $1.3 billion in deposits, up 10.0%; and
 $1.3 billion in loans, up 9.1%.
     Nonperforming loans and assets were $17.4 million and $20.1 million,
 respectively at March 31, 2001, which represented increases of $2.3 million,
 or 14.9%, and $1.6 million, or 8.4%, respectively, as compared to December 31,
 2000.  The increase in nonperforming loans was primarily due to an increase in
 the commercial category, partially offset by a decrease in the residential
 real estate category.  As compared to March 31, 2000, nonperforming loans and
 assets increased $4.3 million, or 32.9%, and $1.3 million, or 6.7%,
 respectively.
     The provision for credit losses was $2.8 million in the first quarter of
 2001, up from $1.9 million in the prior year's first quarter.  The increase in
 the provision for credit losses was primarily related to the increase in
 charge-offs and nonperforming loans.  Management believes the allowance for
 credit losses is adequate as of March 31, 2001 and that the Company's future
 levels of nonperforming loans and related charge-offs will be reflective of
 Hawaii's economy.
     At March 31, 2001, total stockholders' equity was $127.9 million, or 7.4%
 of total assets.  At March 31, 2001, the Company's common stock traded at
 approximately 84% of its book value per share.
     City Bank provides a full range of banking products and services for
 small- and medium-sized businesses and retail customers through its
 21 branches on the islands of Oahu, Maui and Hawaii.
     This press release contains forward-looking statements that involve risks
 and uncertainties, including those related to CB Bancshares, Inc.'s
 expectations regarding financial results, the costs and expenses of
 transactions discussed herein and information contained in this document where
 statements are preceded by, followed by or include the words "believes,"
 "plans," "intends," "expects," "anticipates" or similar expressions.  For such
 statements, CB Bancshares, Inc. claims the protection of the safe harbor for
 forward-looking statements contained in the Private Securities Litigation
 Reform Act of 1995.  Additional factors that could cause actual results to
 differ from those contained in the forward-looking statements include those
 set forth in CB Bancshares, Inc. Annual Report on Form 10-K for the year ended
 December 31, 2000 which has been filed with the Securities and Exchange
 Commission.
 
 
                         CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                            At or for the Quarter Ended
                              March 31, 2001 and 2000
                                                               Change
                               2001         2000          Amount      Percent
 
            (dollars in thousands, except number of shares and per share data)
 
     QUARTER ENDED MARCH 31:
      Net income             $2,801        $2,434         $367          15.1%
      Cash earnings (1)       2,950         2,525          425          16.8
      Per share data:
       Diluted:
         Earnings              0.83          0.75         0.08          10.7
         Cash (1)              0.88          0.78         0.10          12.8
       Cash dividends          0.10          0.07         0.03          42.9
       Average shares
        outstanding (6)   3,359,045     3,251,738      107,307           3.3
 
     AT MARCH 31:
      Balance sheet:
       Total assets      $1,728,315    $1,648,167      $80,148           4.9%
       Loans              1,305,450     1,196,047      109,403           9.1
       Deposits           1,255,008     1,140,459      114,549          10.0
       Stockholders'
        equity              127,942       116,752       11,190           9.6
 
      Asset quality:
       Nonperforming loans   17,384        13,081        4,303          32.9
       Nonperforming
        assets (4)           20,142        18,884        1,258           6.7
       Allowance for credit
        losses               16,469        18,630       (2,161)        (11.6)
 
      Per share data:
       Book value             40.11         36.06         4.05          11.2
       Market value           33.75         23.75        10.00          42.1
 
      Balance sheet
       averages:
        Total assets     $1,720,048    $1,610,439     $109,609           6.8%
        Loans             1,302,216     1,170,129      132,087          11.3
        Earning assets    1,641,091     1,524,855      116,236           7.6
        Deposits          1,233,232     1,106,482      126,750          11.5
        Stockholders'
         equity             125,552       115,722        9,830           8.5
 
     SELECTED FINANCIAL RATIOS:
      Return on average:
       Total assets (2)        0.66%          0.61%
       Stockholders'
        equity (2)              9.05         8.46
       Tangible stockholders'
        equity (2), (3)         9.62         8.92
      Net interest margin (2)   3.96         4.08
      Efficiency ratio (5)     63.27        64.93
      Nonperforming loans to
      total loans
      (at March 31)             1.33         1.09
      Nonperforming assets to
       total assets
       (at March 31) (4)        1.17         1.15
      Allowance for credit
       losses to total loans
       (at March 31)            1.26         1.56
      Allowance for credit
       losses to nonperforming
       loans (at March 31)     94.74       142.42
 
     Notes:
      (1)  Excludes amortization of intangibles.
      (2)  Annualized.
      (3)  Defined as cash earnings as a percentage of average stockholders'
           equity minus average intangibles.
      (4)  Nonperforming assets consist of nonperforming loans and other real
           estate owned.
      (5)  Defined as noninterest expense minus amortization of intangibles as
           a percentage of total operating revenue.
      (6)  Includes common stock equivalents of 169,978 shares for the quarter
           ended March 31, 2001.
 
 
      CONSOLIDATED BALANCE SHEETS
       CB Bancshares, Inc. and Subsidiaries
       (Unaudited)
 
 
                                                     March 31,      March 31,
     (in thousands)                                    2001           2000
 
     ASSETS
     Cash and due from banks                          $35,696        $43,111
     Interest-bearing deposits in other banks           1,010             81
     Federal funds sold                                21,560         14,900
     Investment securities:
      Available-for-sale                              280,963        313,462
      Restricted                                       32,949         32,254
     Loans held for sale                               49,716          4,808
     Loans, net                                     1,239,265      1,172,609
     Premises and equipment                            18,576         17,679
     Other assets                                      48,580         49,263
 
     Total assets                                  $1,728,315     $1,648,167
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Deposits:
      Non-interest bearing                           $128,502       $118,188
      Interest bearing                              1,126,506      1,022,271
       Total deposits                               1,255,008      1,140,459
     Short-term borrowings                             75,700        148,500
     Other liabilities                                 18,227         17,383
     Long-term debt                                   244,438        225,073
     Minority interest in consolidated subsidiary       7,000             --
       Total liabilities                            1,600,373      1,531,415
 
     Stockholders' equity:
      Preferred stock                                      --             --
      Common stock                                      3,190          3,238
      Additional paid-in capital                       54,621         55,785
      Retained earnings                                74,767         64,365
      Accumulated other comprehensive income (loss),
       net of tax                                      (4,636)        (6,636)
 
       Total stockholders' equity                     127,942        116,752
 
     Total liabilities and stockholders' equity    $1,728,315     $1,648,167
 
 
      CONSOLIDATED STATEMENTS OF INCOME
       CB Bancshares, Inc. and Subsidiaries
       (Unaudited)
 
                                                  Three months ended March 31,
     (in thousands)                                    2001            2000
 
     Interest income:
      Interest and fees on loans                      $28,139        $24,917
      Interest and dividends on investment securities:
       Taxable interest income                          5,036          5,229
       Nontaxable interest income                         388            384
       Dividends                                          520            527
      Other interest income                               178            148
        Total interest income                          34,261         31,205
 
     Interest expense:
      Deposits                                         13,086         10,328
      Short-term borrowings                             2,242          2,179
      Long-term debt                                    3,131          3,441
       Total interest expense                          18,459         15,948
       Net interest income                             15,802         15,257
     Provision for credit losses                        2,750          1,906
       Net interest income after provision for credit
        losses                                         13,052         13,351
 
     Noninterest income:
      Service charges on deposit accounts                 834            646
      Other service charges and fees                    1,139            918
      Net realized gains (losses) on sales of securities  387           (437)
      Net gains on sales of loans                         162            140
      Other                                               591            447
       Total noninterest income                         3,113          1,714
 
     Noninterest expense:
      Salaries and employee benefits                    5,866          4,934
      Net occupancy expense                             1,592          1,845
      Equipment expense                                   816            501
      Other                                             3,843          3,888
       Total noninterest expense                       12,117         11,168
 
       Income before income taxes                       4,048          3,897
     Income tax expense                                 1,247          1,463
       NET INCOME                                      $2,801         $2,434
 
     For further information, please contact Dean Hirata, Senior Vice President
 and Chief Financial Officer of CB Bancshares, Inc., 808-535-2583; or Wayne
 Miyao, Senior Vice President of City Bank, 808-535-2590.
 
 SOURCE  CB Bancshares, Inc.