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.