The announcement yesterday came at the same time that CB Bancshares said it plans to slash its quarterly dividend 84 percent, prompting the company's stock to tumble 16.3 percent today.
Ronald Migita, who stepped down in November as president of City Bank and International Savings when CB Bancshares said it would merge the two subsidiaries, will become the holding company's next president and chief executive officer, replacing James Morita who is retiring.
Migita will not assume Morita's duties as chairman, though. The company has not yet appointed Morita's successor as chairman, said Daniel Motohiro, senior vice president.
Yesterday, CB Bancshares' board approved Migita's election, which is subject to regulatory approval and talks with Migita. Executives declined comment on Migita's selection.
CB Bancshares is Hawaii's third largest bank-holding company with about $1.4 billion in assets.
The company has attracted the attention of investors lately as CB Bancshares' thinly traded stock has soared 27.5 percent since Jan. 1 before taking a sharp spill today. The bank's shares fell 16.3 percent, or $6, on the Nasdaq market to close at $31. CB Bancshares stock has hit 52-week highs several times during the past two weeks.
Separately, CB Bancshares yesterday said that it plans to lower the company's quarterly dividend from the current 32.5 cents a share to 5 cents a share. The dividend cut, which requires shareholder and regulatory approval, is due to lower earnings and higher costs brought on by CB Bancshares' ongoing merger of its 11-branch International Savings with its 13-branch City Bank, the company said.
If approved, the new dividend would be payable on April 30 to shareholders of record on April 15.
David Fry, president of the local stock brokerage Fry & Co., called Migita's return a "positive management change" but said the dividend reduction was unnecessary from his analysis of company' finances.
Migita, 55, joined CB Bancshares in 1995 as president and chief operating officer.
Prior to that, he worked 29 years at the Bank of Hawaii. Morita, 83, is one of the founders of City Bank in 1958. Last month, he announced he would retire before this year's annual shareholders' meeting. CB Bancshares has not yet scheduled its 1997 meeting.