POSTED: 09:23 a.m. HST, Jan 24, 2011
Bank of Hawaii Corp. said today that its fourth-quarter profit was essentially flat as a decline in credit losses was offset by lower net interest income and less revenue from fees and charges.
But the results beat Wall Street's forecast, and shares of the regional bank rose more than 3 percent.
Peter S. Ho, the bank's chairman and CEO, said credit quality continues to improve.
"The Hawaii economy is continuing to recover due, in part, to improving arrival and spend statistics in our visitor industry," Ho said.
For the three months ended Dec. 31, Bank of Hawaii reported net income of nearly $40.6 million, or 84 cents per share, slightly above a profit of about $40.5 million, or 84 cents per share, a year earlier.
Analysts surveyed by FactSet had forecast a profit of 70 cents per share, on average, in the latest quarter.
Shares of Bank of Hawaii rose $1.56, or 3.3 percent, or $49.18 in midday trading. The stock has traded in a 52-week range of $41.60 to $54.10.
Net interest income, or earnings from deposits and loans, fell 7 percent to $96.3 million from $103.5 million
Non-interest income, the money the bank earns from fees and charges, tumbled 36 percent to $51.5 million from $80.8 million.
However, the provision for credit losses dropped to nearly $5.3 million from $26.8 million a year earlier. Non-performing assets fell to $37.8 million as of Dec. 31 from $48.3 million a year earlier.
For the full year, Bank of Hawaii reported net income of $183.9 million, or $3.80 per share, up from $144 million, or $3.00 per share, in 2009.