HONOLULU (HawaiiNewsNow) -
American Savings Bank and
Central Pacific Bank - the number three and number four Hawaii banks - report
higher profits from the fourth quarter, and both are lending more.
American Savings Bank made a fourth quarter profit of
$14.4 million, up $200,000 from the same quarter of 2011, while full year 2012
profit was $58.6 million, down $800,000 from 2011.
"Our loans to customers increased 2.6 percent in
2012, with growth in each if our strategic segments of commercial lending,
commercial real estate, home equity lending, and consumer lending," CEO
Richard Wacker said in a statement Wednesday.
Central Pacific Financial Corp. made a fourth quarter
profit of $12.4 million, up $300,000 from the same quarter of 2011, and full
year 2012 profit was $47.4 million, up from $36.6 million in 2011.
"The 30 percent increase in net income, year over
year, is a reflection of significant improvements in our credit risk
profile," CEO John Dean said in a statement Thursday.
American Savings reported improved asset quality and a
lower provision for loan losses - this means more borrowers are repaying debt
so less cash cushion is required. Central Pacific reduced nonperforming assets
- this refers to loans which are not being repaid - by more than a third to $90
million from the third to fourth quarter.
Central Pacific deposits grew to $3.68 billion, and its
loan and lease portfolio grew $93.8 million to $2.2 billion during the quarter.
American Savings deposits grew to $4.2 billion, and its loan portfolio grew to
$3.79 billion, mainly due to 18 percent growth in home equity loans - formerly
known as second mortgages. American Savings does more equity loans than any
other Hawaii bank.
Earlier, First Hawaiian Bank and Bank of Hawaii both
reported higher fourth quarter profits and increased lending, a key component
of economic recovery when it means businesses can access capital to grow.
First Hawaiian reported $53.1 million fourth quarter
profit - quarterly and annual profit both grew more than 3 percent - its loan
and lease portfolio grew to $9 billion.
Bankoh made $40.3 million fourth quarter profit, up $1.1
million from year-before levels - annual profit slipped slightly - its loan and
lease portfolio grew to $5.85 billion.
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