Bankoh bullish, though posting lower profit - Hawaii News Now - KGMB and KHNL

Bankoh bullish, though posting lower profit

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HONOLULU (HawaiiNewsNow) -

Bank of Hawaii reports lower deposits and lower profits for the first quarter, but says private sector business is up and the bank is bullish on the Hawaii economy.

Bankoh made an $36 million first quarter profit, down $8 million from $44 million a year ago. Revenue fell 6.6 percent to $136.3 million. The bank's quarterly earnings report made a distinction between government deposits, which were down, and private sector deposits, which were up.

CEO Peter Ho also cited "reduced mortgage income, lower net interest margin, and seasonal expenses," but added, "our balanced sheet remains solid and we maintained our disciplined approach to risk and capital management."

The report said, "Hawaii's economy continued to improve during the first quarter of 2013 led by tourism," and cited improving home sales as well.

Net interest income fell 10 percent to $89 million while non-interest income fell fractionally to $48 million, mostly on reduced mortgage banking revenue, the bank reported Monday. Return on average assets was 1.08 percent, down from 1.29 percent a year ago. Efficiency ratio was 61.90 percent, compared to 58.35 percent a year earlier.

Bankoh's loan and lease portfolio at the end of the quarter was under $5.8 million down $70 million from year-ago levels. Deposits fell to $11.2 billion on lower public deposits - consumer and business deposits rose. Asset quality improved and the bank was able to reduce its provision for loan losses by $2 million from the fourth quarter of 2012 to just under $127 million at the end of March. Net loans and leased charged off totaled $2 million. Total assets on March 31 topped $13.5 billion, but that was down $230 million from year-ago levels.

Expenses included $1.5 million for phasing out operations in American Samoa and $1.2 million for the final phase of new computers companywide.

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