HONOLULU (HawaiiNewsNow) - Bank of Hawaii Corp. made a $47 million second quarter profit, up 48% from the same time last year, and the outgoing CEO said the Hawaii economy was rebounding from the recent recession.
"Another strong quarter," said Al Landon, who hands the CEO reins to bank president Peter Ho at the end of the month. "The Hawaii economy continues to show signs of gradual improvement."
Bankoh reported Monday it made a $16 million second quarter provision for credit losses, down from $21 million in the previous quarter and $29 million a year earlier. It exceeded actual charge-offs by $1 million. Non-performing assets "remained at elevated levels," $43 million, up from $39 million a year earlier, the bank said in its earnings report, "due to the lengthy resolution process on residential mortgages." Net charge-offs: $15 million.
Allowance for loan losses grew $1 million to $147 million, 2.71% of outstanding loans and leases. "Further increases to the allowance may not be necessary," Landon said.
+ Return on average equity was 1.48%, compared to 1.06% a year ago. Interest margin was down from year-ago levels.
+ Net interest income: $104 million, up $1 million from a year ago. Margin: 3.51%.
+ Non-interest income: $69 million, up $9 million from a year ago, including $1 million from selling the company's retail insurance business.
+ Total assets: $12.86 billion, up from $12.19 billion a year ago.
+ Total loans and leases: $5.52 billion, down from $6.26 billion a year ago.
+ Earnings per share: 96 cents, compared to 65 cents a year ago.
Bankoh said there was "weak loan demand" in the quarter. On Friday, First Hawaiian Bank CEO Don Horner said businesses had been taking a "wait and see" outlook on borrowing.
Bank of Hawaii was founded in 1897.