Annual Report (Form 10-K), fiscal year 1994

ITEM 1. BUSINESS
Organization
	CPB Inc. (the "Company") is a Hawaii corporation organized on February 1, 1982 pursuant to a Plan of Reorganization and Agreement of Merger as a bank holding company and is subject to the Bank Holding Company Act of 1956, as amended. The Company's principal business is to serve as a holding company for its sole subsidiary, Central Pacific Bank (the "Bank"). The Bank was incorporated in its present form in the State of Hawaii on March 16, 1982 in connection with the holding company reorganization, and its predecessor entity was incorporated in the State of Hawaii on January 15, 1954. The Bank's deposits are insured by the Federal Deposit Insurance Corporation ("FDIC") up to applicable limits. The Bank is not a member of the Federal Reserve System. Based on total consolidated assets at December 31, 1994, the Company was the third largest bank holding company in Hawaii.
	The Bank owns 100% of the outstanding stock of CPB Properties, Inc. ("CPB Properties"), a company which is the managing partner and 50% owner of CKSS Associates, a Hawaii limited partnership ("CKSS"). CKSS owns Central Pacific Plaza, in which the Company's and Bank's headquarters and main office are located. CKSS also developed the Kaimuki Plaza, in which one of the Bank's branch offices is located. In addition, CPB Properties owns the properties on which one of the Bank's branch offices and the Bank's operations center are located, as well as the property underlying the Kaimuki Plaza. See "ITEM 2.



ITEM 2. PROPERTIES
	The executive offices of the Company and the Bank are located at 220 South King Street, Honolulu, Hawaii 96813.
	All Bank properties, except for the properties in which the Hilo and Moiliili branches and the operations center are situated, are occupied under leases which expire on various dates through 2019, and, in most instances, include options to renew. For the year ended December 31, 1994, net rent expense under these leases aggregated $4.1 million. For additional information relating to lease rental expense and commitments, see Note 17 to the Company's Consolidated Financial Statements in the 1994 Annual Report which is incorporated herein by reference.
	CPB Properties is a general partner and the managing partner with a 50% interest in CKSS. Other partners in CKSS are Kajima Development Corporation, a general partner, Sumitomo Corporation and Sumitomo Corporation of America, limited partners. CKSS was formed to develop, construct and lease a 22-story office building complex in the downtown financial district of Honolulu at the corner of King and Alakea Streets, which now serves as the Company's and the Bank's headquarters. The building contains 201,865 square feet of rentable space of which approximately 57,000 square feet are occupied by the Company. CKSS carried the building complex on its books at a net book value of $25.8 million as of December 31, 1994. To finance the building, CKSS entered into loan agreements with The Sumitomo Bank, Limited ("Sumitomo") and the Bank, whereby Sumitomo agreed to lend $20.0 million and the Bank agreed to lend $4.0 million to CKSS. Both loans are secured by real estate and are due on November 18, 1996. As of December 31, 1994, the Bank had advanced pursuant to this loan agreement the sum of $0.6 million. As of the same date, Sumitomo had advanced pursuant to its loan agreement the sum of $11.0 million. The average interest rate at December 31, 1994 was 7.20%. The investment in CKSS is carried on the books of the Company under the equity method of accounting. See Notes 1 and 7 to the Company's Consolidated Financial Statements in the 1994 Annual Report which is incorporated herein by reference.
	In October 1992, CPB Properties, as lessor, entered into a lease agreement with CKSS for certain real property located in Kaimuki, Hawaii, effective from January 1, 1993 to December 31, 2047. Under the terms of the lease, CKSS will develop a 4-story office building (the "Kaimuki Plaza").
	On April 30, 1993, CKSS and the Bank entered into a building loan agreement to borrow up to $10.7 million at .75% above LIBOR to finance the Kaimuki Plaza. At December 31, 1994, the Bank had advanced $9.0 million pursuant to this loan agreement. The average interest rate at December 31, 1994 was 6.68%.
	In November 1994, the Bank entered a 25-year lease agreement with CKSS to lease office space in the Kaimuki Plaza for its Kaimuki Branch. The lease is effective from November 1, 1994 through October 31, 2019.
	The Bank holds title to the land and building in which the Hilo branch office is situated. CPB Properties holds title to a portion of the land and the building in which the Moiliili branch office is situated. CPB Properties also holds title to the land on which the operations center is located. There are no encumbrances with respect to these properties.
ITEM 3.

ITEM 3. LEGAL PROCEEDINGS
	The Company is a party to ordinary routine litigation incidental to its business, none of which is considered likely to have a materially adverse effect on the Company.
ITEM 4.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
	No matters were submitted to the Company's shareholders for a vote during the fourth quarter of 1994.
ITEM 4(A). EXECUTIVE OFFICERS OF THE REGISTRANT
	The following table sets forth, as of February 28, 1995, the executive officers of the Company, their positions, principal occupation during the past five years and ages. Each officer is appointed by the Board of Directors of the Company and serves at their pleasure.
PART II.
ITEM 5.

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
	For information concerning the market for the Company's common stock and related shareholder matters, see "Common Stock Price Range and Dividends" contained in the 1994 Annual Report, which is incorporated herein by reference, and "ITEM 1. BUSINESS -- Supervision and Regulation -- Restrictions on Transfers of Funds to the Company by the Bank."
ITEM 6.

ITEM 6. SELECTED FINANCIAL DATA
	For selected financial data concerning the Company, see "Selected Consolidated Financial Data" contained in the 1994 Annual Report, which is incorporated herein by reference.
ITEM 7.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
	For Management's discussion and analysis of financial condition and results of operations, see, "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in the 1994 Annual Report, which is incorporated herein by reference.
ITEM 8.


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
	For financial statements of the Company, see the 1994 Annual Report, which is incorporated herein by reference, and the "Independent Auditors' Report" thereon. See "ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K" below for financial statements filed as a part of this report.
ITEM 9.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
	None.
PART III
ITEM 10.



ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
	Except as hereinafter noted, the information concerning directors and executive officers of the Company is incorporated by reference from the section entitled "Election of Directors" of the Company's Proxy Statement, which is filed as Exhibit No. 99 to this Annual Report on Form 10-K. For information concerning executive officers of the Company, see "ITEM 4(A). EXECUTIVE OFFICERS OF THE REGISTRANT."
ITEM 11.

ITEM 11. EXECUTIVE COMPENSATION
	Information concerning executive compensation is incorporated by reference from the section entitled "Compensation of Directors and Executive Officers" of the Company's Proxy Statement, which is filed as Exhibit No. 99 to this Annual Report on Form 10-K.
ITEM 12.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
	Information concerning security ownership of certain beneficial owners and Management is incorporated by reference from the sections entitled "Principal Shareholders," and "Election of Directors" of the Company's Proxy Statement, which is filed as Exhibit No. 99 to this Annual Report on Form 10-K.
ITEM 13.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
	Information concerning certain relationships and related transactions is incorporated by reference from the section entitled "Certain Transactions" of the Company's Proxy Statement, which is filed as Exhibit No. 99 to this Annual Report on Form 10-K.
PART IV.
ITEM 14.

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
	(a)	Financial Statements and Schedules
		(1) The following financial statements included in the registrant's 1994 Annual Report to Shareholders are incorporated herein by reference. Page number references are to page numbers in the 1994 Annual Report.
Page
CPB Inc. and Subsidiary:
Independent Auditors' Report 35
Consolidated Balance Sheets at December 31, 1994 and 1993 18
Consolidated Statements of Income for the Years Ended December 31, 1994, 1993, and 1992 19
Consolidated Statements of Changes in Stockholders' Equity for the Years Ended December 31, 1994, 1993 and 1992 20
Consolidated Statements of Cash Flows for the Years Ended December 31, 1994, 1993 and 1992 21
Notes to Consolidated Financial Statements 22
	(2)	All schedules are omitted because they are not applicable, not material or because the information is included in the financial statements or the notes thereto.
	(b)	Reports on Form 8-K
	The Company filed no reports on Form 8-K during the last quarter of 1994.
	(c)	Exhibits
	See Index to Exhibits included in this Annual Report on Form 10-K.
SIGNATURES
	Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
	Dated: March 27, 1995.
CPB INC. (Registrant)
By /s/ Yoshiharu Satoh YOSHIHARU SATOH Chairman of the Board and Chief Executive Officer
	Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.
Signature Title Date
/s/ Yoshiharu Satoh Chairman of the Board, March 29, 1995 Yoshiharu Satoh Chief Executive Officer (Principal Executive Officer), Director
/s/ Joichi Saito President, Director March 29, 1995 Joichi Saito
/s/ Neal K. Kanda Vice President, March 29, 1995 Neal K. Kanda Treasurer (Principal Financial Officer, Principal Accounting Officer)
/s/ Paul Devens Director March 29, 1995 Paul Devens
/s/ Alice F. Guild Director March 29, 1995 Alice F. Guild
/s/ Dennis I. Hirota Director March 29, 1995 Dennis I. Hirota, Ph.D.
/s/ Stanley Hong Director March 29, 1995 Stanley Hong
Director March __, 1995 Kensuke Hotta
Director March __, 1995 Daniel M. Nagamine
/s/ Naoaki Shibuya Director March 29, 1995 Naoaki Shibuya
INDEX TO EXHIBITS