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Bank of Hawaii Corp.’s net income jumped 24.1 percent in the third quarter as it generated solid loan growth amid a slowing economy and benefited from higher interest rates and lower taxes.
The state’s second-largest bank reported today that earnings rose to $56.9 million, or $1.36 a share, to beat analysts’ consensus estimate by 2 cents. A year earlier, Bankoh had a profit of $45.9 million, or $1.08 a share.
Loans rose 6.9 percent to $10.23 billion to reflect the new norm in the Hawaii economy as growth slows statewide.
Bankoh’s net interest margin, which is the difference between how much the bank pays for deposits compared to what it charges to loan money out, widened to 3.07 percent from 2.92 percent on the heels of the higher interest rates. Its net interest income increased 5.7 percent to $122.9 million.
Noninterest income, which includes mortgage banking income, service charges and fees, slipped 2.2 percent to $41.5 million.
The bank’s effective tax rate for the third quarter was 18.75 percent compared with 30.62 percent in the year-ago period. The lower taxes were the result of a new tax law that went into effect this year which lowered the federal corporate tax rate to 21 percent from 35 percent.
Bankoh, which reported its results before the market opened, saw its stock close down $1.31, or 1.7 percent, to a 52-week low of $74.47.
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