CPB Inc. Reports Record First Quarter Earnings

Apr 24, 2001, 01:00 ET from CPB Inc.

    HONOLULU, April 24 /PRNewswire Interactive News Release/ --
 CPB Inc. (Nasdaq:   CPBI), parent company of Central Pacific Bank, today
 announced record earnings for the seventh consecutive quarter along with
 improved asset quality.
     The Company reported net income of $5.33 million for the three-month
 period ended March 31, 2001, an increase of 16.2% over the same period last
 year.  Earnings per share of $0.63 increased by 26.0% over last year's first
 quarter.
     Total assets of $1.77 billion increased by 9.0%, total deposits of
 $1.38 billion increased by 5.5%, and net loans of $1.22 billion increased by
 4.6% from a year ago.  Nonperforming assets, loans delinquent for 90 days or
 more and restructured loans decreased by 36.7% to 0.66% of total loans.
 Efficiency ratio improved to 57.64% for the quarter, a drop from the 61.29%
 reported over the same period in 2000.
     The Board of Directors of CPB Inc. declared a first quarter cash dividend
 of $0.16 per share, up by 6.7% over the $0.15 dividend declared during the
 same period last year.
     "Asset quality improvements and operating expense reductions contributed
 to our solid growth resulting in seven consecutive quarters of record
 earnings," said Joichi Saito, Chairman of the Board and Chief Executive
 Officer.
     "In our efforts to sustain earnings growth, we will continue our expense
 management program, and new product and service initiatives."
 
     The following are notable activities in the first quarter of 2001:
 
     -- On February 1, a Marketing and Corporate Development Group was
        established within the Bank.  This new group will consist of three
        divisions: the Marketing Division, the Product and Delivery Systems
        Development Division, and the Training and Service Quality Division.
        Continuing the Bank's momentum in providing a competitive product mix
        and superior customer service will be the focus of this group.
 
     -- On March 18, the Bank launched its new service campaign with a
        bank-wide rally.  As part of the campaign, the Bank developed a new
        tagline, "Count on Exceptional."  Independent surveys show Central
        Pacific Bank's competitive advantage to be its service quality.  A
        comprehensive media package planned for the year is designed to promote
        Central Pacific Bank's brand of "exceptional" service.
 
     CPB Inc. is a Hawaii bank holding company with $1.77 billion in assets.
 Central Pacific Bank, its subsidiary, is Hawaii's third largest commercial
 bank with 24 branches statewide, including six supermarket branches.
 
 
                            CPB INC. AND SUBSIDIARY
                     Financial Highlights - March 31, 2001
                                  (Unaudited)
 
     (In thousands, except per share data)
     SELECTED FINANCIAL DATA
                                                 March 31,                 %
                                            2001           2000         Change
 
     Total assets                       $1,772,300     $1,625,857        9.0
     Interest earning assets
      (before securities
      valuation allowance)               1,660,728      1,527,025        8.8
     Loans, net of unearned income       1,238,316      1,183,575        4.6
     Allowance for loan losses              23,254         21,886        6.3
       Net loans                         1,215,062      1,161,689        4.6
     Nonperforming (nonaccrual) loans        6,402         10,513      -39.1
     Other real estate                         664            476       39.5
       Total nonperforming assets            7,066         10,989      -35.7
     Loans delinquent for
      90 days or more                          605          1,352      -55.3
     Restructured loans
      (still accruing interest)                455            494       -7.9
        Total nonperforming assets,
        loans delinquent
        for 90 days or more
        and restructured loans               8,126         12,835      -36.7
     Deposits                            1,377,959      1,305,524        5.5
     Stockholders' equity                  142,363        145,454       -2.1
 
     Number of shares outstanding            8,226          9,221      -10.8
     Book value per share                   $17.31         $15.77        9.8
     Market value per share                 $28.81         $24.25       18.8
 
 
                                                   Three months ended
                                                        March 31,
                                                                         %
     SUMMARY OF OPERATIONS                  2001            2000       Change
 
     Interest income -
      taxable equivalent                   $35,279        $29,278       20.5
     Interest expense                       15,344         11,974       28.1
       Net interest income -
        taxable equivalent                  19,935         17,304       15.2
     Taxable equivalent adjustment             317            319       -0.6
       Net interest income                  19,618         16,985       15.5
     Provision for loan losses                 750          1,000      -25.0
       Net interest income
        after provision
         for loan losses                    18,868         15,985       18.0
 
     Investment securities
      gains (losses)                           180           (360)    -150.0
     Other operating income                  2,795          4,836      -42.2
       Total other operating income          2,975          4,476      -33.5
 
     Salaries and employee benefits          6,902          6,549        5.4
     Other operating expense                 6,660          6,825       -2.4
      Total other operating
       expense                              13,562         13,374        1.4
 
 
                            CPB INC. AND SUBSIDIARY
                     Financial Highlights - March 31, 2001
                                   Continued
 
                                              Three months ended
                                                   March 31,
                                                                          %
                                             2001           2000        Change
 
     Income before income taxes              8,281          7,087       16.8
      Income taxes                           2,953          2,501       18.1
 
     Net income                             $5,328         $4,586       16.2
 
     Cash dividends declared                $1,316         $1,383       -4.8
 
     Per common share:
      Net income                             $0.63          $0.50       26.0
 
     Cash dividends declared                 $0.16          $0.15        6.7
 
     Weighted average shares outstanding
       (in thousands)                        8,438          9,260       -8.9
 
 
     SELECTED AVERAGE BALANCES
 
     Total assets                       $1,774,710     $1,606,963       10.4
     Interest-earning assets             1,671,912      1,510,355       10.7
     Loans, net of unearned interest     1,281,153      1,174,692        9.1
     Other real estate                       1,409          1,602      -12.0
     Deposits                            1,351,758      1,290,621        4.7
     Interest-bearing liabilities        1,403,367      1,254,864       11.8
     Stockholders' equity                  146,000        146,222       -0.2
 
 
     PERFORMANCE RATIOS
 
     Return on average assets **             1.20%          1.14%
     Return on average
      stockholders' equity **               14.60%         12.55%
     Efficiency ratio (1)                   57.64%         61.29%
     Net interest margin **                  4.77%          4.58%
     Net loan charge-offs
      to average loans **                    0.03%         -0.04%
     Loan charge-offs                         $507           $463
     Recoveries                                399            581
      Net loan charge-offs (recoveries)        108           (118)
     Dividend payout ratio                  25.40%         30.00%
     **Annualized
 
     (1) Adjusted for $643,000 in nonrecurring other operating expense
     related to early payoff of borrowings in 2001.
 
 
                     Financial Highlights - March 31, 2001
                                   Continued
 
 
                                                             March 31,
     BALANCE SHEET RATIOS                               2001           2000
 
     Total stockholders' equity to assets               8.03%          8.95%
     Nonperforming assets to total loans
      & other real estate                               0.57%          0.93%
     Nonperforming assets and loans delinquent
      for 90 days or more to total loans &
      other real estate                                 0.62%          1.04%
     Nonperforming assets, loans delinquent
      for 90 days or more
      and restructured loans to total loans
      & other real estate                               0.66%          1.08%
     Allowance for loan losses to total loans           1.88%          1.85%
     Allowance for loan losses to
      nonperforming loans                             363.23%        208.18%
 
 
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SOURCE CPB Inc.
    HONOLULU, April 24 /PRNewswire Interactive News Release/ --
 CPB Inc. (Nasdaq:   CPBI), parent company of Central Pacific Bank, today
 announced record earnings for the seventh consecutive quarter along with
 improved asset quality.
     The Company reported net income of $5.33 million for the three-month
 period ended March 31, 2001, an increase of 16.2% over the same period last
 year.  Earnings per share of $0.63 increased by 26.0% over last year's first
 quarter.
     Total assets of $1.77 billion increased by 9.0%, total deposits of
 $1.38 billion increased by 5.5%, and net loans of $1.22 billion increased by
 4.6% from a year ago.  Nonperforming assets, loans delinquent for 90 days or
 more and restructured loans decreased by 36.7% to 0.66% of total loans.
 Efficiency ratio improved to 57.64% for the quarter, a drop from the 61.29%
 reported over the same period in 2000.
     The Board of Directors of CPB Inc. declared a first quarter cash dividend
 of $0.16 per share, up by 6.7% over the $0.15 dividend declared during the
 same period last year.
     "Asset quality improvements and operating expense reductions contributed
 to our solid growth resulting in seven consecutive quarters of record
 earnings," said Joichi Saito, Chairman of the Board and Chief Executive
 Officer.
     "In our efforts to sustain earnings growth, we will continue our expense
 management program, and new product and service initiatives."
 
     The following are notable activities in the first quarter of 2001:
 
     -- On February 1, a Marketing and Corporate Development Group was
        established within the Bank.  This new group will consist of three
        divisions: the Marketing Division, the Product and Delivery Systems
        Development Division, and the Training and Service Quality Division.
        Continuing the Bank's momentum in providing a competitive product mix
        and superior customer service will be the focus of this group.
 
     -- On March 18, the Bank launched its new service campaign with a
        bank-wide rally.  As part of the campaign, the Bank developed a new
        tagline, "Count on Exceptional."  Independent surveys show Central
        Pacific Bank's competitive advantage to be its service quality.  A
        comprehensive media package planned for the year is designed to promote
        Central Pacific Bank's brand of "exceptional" service.
 
     CPB Inc. is a Hawaii bank holding company with $1.77 billion in assets.
 Central Pacific Bank, its subsidiary, is Hawaii's third largest commercial
 bank with 24 branches statewide, including six supermarket branches.
 
 
                            CPB INC. AND SUBSIDIARY
                     Financial Highlights - March 31, 2001
                                  (Unaudited)
 
     (In thousands, except per share data)
     SELECTED FINANCIAL DATA
                                                 March 31,                 %
                                            2001           2000         Change
 
     Total assets                       $1,772,300     $1,625,857        9.0
     Interest earning assets
      (before securities
      valuation allowance)               1,660,728      1,527,025        8.8
     Loans, net of unearned income       1,238,316      1,183,575        4.6
     Allowance for loan losses              23,254         21,886        6.3
       Net loans                         1,215,062      1,161,689        4.6
     Nonperforming (nonaccrual) loans        6,402         10,513      -39.1
     Other real estate                         664            476       39.5
       Total nonperforming assets            7,066         10,989      -35.7
     Loans delinquent for
      90 days or more                          605          1,352      -55.3
     Restructured loans
      (still accruing interest)                455            494       -7.9
        Total nonperforming assets,
        loans delinquent
        for 90 days or more
        and restructured loans               8,126         12,835      -36.7
     Deposits                            1,377,959      1,305,524        5.5
     Stockholders' equity                  142,363        145,454       -2.1
 
     Number of shares outstanding            8,226          9,221      -10.8
     Book value per share                   $17.31         $15.77        9.8
     Market value per share                 $28.81         $24.25       18.8
 
 
                                                   Three months ended
                                                        March 31,
                                                                         %
     SUMMARY OF OPERATIONS                  2001            2000       Change
 
     Interest income -
      taxable equivalent                   $35,279        $29,278       20.5
     Interest expense                       15,344         11,974       28.1
       Net interest income -
        taxable equivalent                  19,935         17,304       15.2
     Taxable equivalent adjustment             317            319       -0.6
       Net interest income                  19,618         16,985       15.5
     Provision for loan losses                 750          1,000      -25.0
       Net interest income
        after provision
         for loan losses                    18,868         15,985       18.0
 
     Investment securities
      gains (losses)                           180           (360)    -150.0
     Other operating income                  2,795          4,836      -42.2
       Total other operating income          2,975          4,476      -33.5
 
     Salaries and employee benefits          6,902          6,549        5.4
     Other operating expense                 6,660          6,825       -2.4
      Total other operating
       expense                              13,562         13,374        1.4
 
 
                            CPB INC. AND SUBSIDIARY
                     Financial Highlights - March 31, 2001
                                   Continued
 
                                              Three months ended
                                                   March 31,
                                                                          %
                                             2001           2000        Change
 
     Income before income taxes              8,281          7,087       16.8
      Income taxes                           2,953          2,501       18.1
 
     Net income                             $5,328         $4,586       16.2
 
     Cash dividends declared                $1,316         $1,383       -4.8
 
     Per common share:
      Net income                             $0.63          $0.50       26.0
 
     Cash dividends declared                 $0.16          $0.15        6.7
 
     Weighted average shares outstanding
       (in thousands)                        8,438          9,260       -8.9
 
 
     SELECTED AVERAGE BALANCES
 
     Total assets                       $1,774,710     $1,606,963       10.4
     Interest-earning assets             1,671,912      1,510,355       10.7
     Loans, net of unearned interest     1,281,153      1,174,692        9.1
     Other real estate                       1,409          1,602      -12.0
     Deposits                            1,351,758      1,290,621        4.7
     Interest-bearing liabilities        1,403,367      1,254,864       11.8
     Stockholders' equity                  146,000        146,222       -0.2
 
 
     PERFORMANCE RATIOS
 
     Return on average assets **             1.20%          1.14%
     Return on average
      stockholders' equity **               14.60%         12.55%
     Efficiency ratio (1)                   57.64%         61.29%
     Net interest margin **                  4.77%          4.58%
     Net loan charge-offs
      to average loans **                    0.03%         -0.04%
     Loan charge-offs                         $507           $463
     Recoveries                                399            581
      Net loan charge-offs (recoveries)        108           (118)
     Dividend payout ratio                  25.40%         30.00%
     **Annualized
 
     (1) Adjusted for $643,000 in nonrecurring other operating expense
     related to early payoff of borrowings in 2001.
 
 
                     Financial Highlights - March 31, 2001
                                   Continued
 
 
                                                             March 31,
     BALANCE SHEET RATIOS                               2001           2000
 
     Total stockholders' equity to assets               8.03%          8.95%
     Nonperforming assets to total loans
      & other real estate                               0.57%          0.93%
     Nonperforming assets and loans delinquent
      for 90 days or more to total loans &
      other real estate                                 0.62%          1.04%
     Nonperforming assets, loans delinquent
      for 90 days or more
      and restructured loans to total loans
      & other real estate                               0.66%          1.08%
     Allowance for loan losses to total loans           1.88%          1.85%
     Allowance for loan losses to
      nonperforming loans                             363.23%        208.18%
 
 
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 SOURCE  CPB Inc.