SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange
Act or 1934
(Amendment No. )
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Section 240.14a-12
CB BANCSHARES, INC.
(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement if other than the Registrant)
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[ ] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2) or
Item 22(a)(2) of Schedule 14A.
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14a-6(i)(3).
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
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2) Aggregate number of securities to which transaction applies:
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pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined):
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FOR IMMEDIATE RELEASE
Contact: Daniel Motohiro
(808) 546-2424
Wayne Miyao
(808) 546-8484
CB Bancshares Inc.
CB BANCSHARES INC. REPORTS FIRST QUARTER 1996 RESULTS
HONOLULU HI MAY 16 1996 ... CB Bancshares, Inc. (NASDAQ: CBBI) reported
net income of $0.6 million or $0.16 per fully-diluted share for the three
months ended March 31, 1996 as compared to $2.3 million or $0.66 per fully-
diluted share for the same period in 1995. The decrease in revenue is primarily
due to the recognition of one time costs related to the previously announced
voluntary separation program. Net income for the first quarter would have been
$2.6 million or $0.72 per fully-diluted share without the one time charge.
Net interest income was $13.8 million for the three months ended March 31,
1996, a decrease of $0.1 million or 01.2% from the first quarter of 1995.
Return on average assets for the first quarter of 1996 was 0.16% compared to
0.66% for the first quarter of 1995. Return on average equity was 1.98% for
the quarter of 1996 as compared to 8.47% for the same period in 1995. The
allowance for loan losses stood at $14.5 million at March 31, 1996 and $14.4
million at March 31, 1995. The Company's capital levels exceed all regulatory
requirements with a leverage ratio of 7.28% at March 31, 1996, which compares
to 6.80% at March 31, 1995.
On January 31, 1996, the Company announced a major initiative to further
improve operating efficiency and decrease expenses by offering a voluntary
separation program ("VSP") to all employees. The VSP exceeded projected
results and a one time charge of $3.3 million was accrued for estimated
separation payments. Employees under the VSP who have not left the Company at
March 31, 1996 are scheduled to leave in the second and third quarters of 1996.
CB Bancshares provides a full range of banking products and services for small-
to-medium size businesses and retail customers through its principal
subsidiaries, City Bank and International Savings & Loan Association. The
Company, with 24 branches on the islands of Oahu, Maui, and Hawaii, is the
third largest bank holding company headquartered in Hawaii with $1.4 billion in
assets, $1.1 billion in loans and $1.0 billion in deposits.
CB BANCSHARES, INC. AND SUBSIDIARIES (unaudited)
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(in thousands, except shares and per share data)
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March 31, December 31, March 31,
1996 1995 1995
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<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 77,806 $ 75,119 $ 49,902
Federal Funds Sold and securities
purchased 605 0 5
Investment securities:
Held-to-maturity 8,626 9,244 223,052
Available for sale 180,312 231,495 42,563
Trading 82 96 1,039
Loans held for sale 2,309 14,350 -
Gross loans 1,110,275 1,121,186 1,104,711
Less allowance for loan losses (14,528) (14,576) (14,423)
Net Loans 1,095,747 1,106,610 1,090,288
Premises and equipment 16,660 16,960 17,619
Other assets 32,644 36,362 43,210
Goodwill 11,064 11,277 11,923
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Total assets $1,425,855 $1,501,513 $1,479,601
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LIABILITIES AND STOCKHOLDERS EQUITY
Deposits
Non-interest bearing $ 117,727 $ 137,287 $ 124,078
Interest bearing 855,114 874,196 828,332
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Total deposits 972,841 1,011,483 952,410
Short-term borrowings 197,984 239,360 283,673
Other liabilities 24,238 32,793 34,751
Long-term debt 115,975 101,371 96,232
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Total liabilities 1,311,038 1,385,007 1,367,066
Contingencies (Note B)
Stockholders' equity
$1 par value, 50,000,000 shares
authorized, Issued and
outstanding - 3,551,228 shares 3,551 3,551 3,551
Additional paid-in capital 65,080 65,080 65,080
Retained earnings 45,699 46,279 44,068
Unrealized valuation adjustment 487 1,596 (164)
Total stockholders' equity 114,817 116,506 112,535
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Total liabilities and
stockholders' equity $1,425,855 $1,501,513 $1,479,601
===============================================================================
</TABLE>
<PAGE>
CB BANCSHARES, INC. AND SUBSIDIARIES (unaudited)
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
(in thousands, except per share data) Quarter ended
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March 31, March 31,
1996 1995
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<S> <C> <C>
Interest income
Interest and fees on loans $23,816 $23,230
Interest and dividends on investment securities
Taxable 2,971 4,023
Non taxable 54 70
Dividends 421 162
Other interest income 507 118
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Total interest income 27,769 27,603
Interest Expense
Deposits 9,038 7,815
Short-term borrowings 3,116 4,131
Long-term debt 1,837 1,716
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Total interest expense 13,991 13,662
Net interest income 13,778 13,941
Provision for loan losses 310 120
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Net interest income after provision
for loan losses 13,468 13,821
Other income
Service charges and fees 1,695 2,072
Other 1,265 112
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Total other income 2,960 2,184
Other expenses
Salaries and employee benefits 8,690 5,074
Net occupancy and equipment expense 2,378 2,419
Other 4,409 4,776
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Total other expenses 15,477 12,269
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Income before income taxes 951 3,736
Provision for income taxes 377 1,400
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Net income $ 574 $2,336
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Per common share:
Net income $ 0.16 $ 0.66
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CB BANCSHARES, INC. AND SUBSIDIARIES (unaudited)
SELECTED RATIOS AND OTHER DATA
(in thousands, except per share data)
Quarter Ended
March 31
1996 1995
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Operating Ratios:
Return on Average Assets 0.16% 0.65%
Return on Average Equity 1.98 8.47
Net Interest Margin 4.08 4.15
Capital Ratios:
Equity/Assets 8.05% 7.61%
Per Share Information:
Earnings per share $ 0.16 $ 0.66
Dividends per share 0.325 0.325
Book Value per share 32.33 31.69
Credit Quality Data:
Non-performing loans $ 19,970 $ 16,835
Non-performing loans 20,775 18,717
Loan loss reserve 14,528 14,423
Average Balances:
Loans, net $1,129,526 $1,093,800
Earning assets 1,372,081 1,363,390
Total assets 1,463,684 1,459,556
Deposits 985,987 940,054
Equity 115,662 111,850
</TABLE>
