American Savings Bank’s earnings fall but loans grow

American Savings Bank showed loan growth for the 10th consecutive quarter but net income declined 10.8 percent primarily due to lower interest rates and a one-time tax benefit that boosted earnings in the year-earlier period.

The state’s third-largest bank said today it had net income of $14.2 million in the first quarter compared with $15.9 million a year ago that included the release of $1 million in tax-related reserves for positions the company had taken in previous years. Without the benefit, American Savings’ earnings were down about 5 percent.

Total loans grew 6.9 percent to $3.86 billion from $3.79 billion at the end of the fourth quarter, achieving the mid-single digit increase that the bank is targeting for itself this year. 

“We feel pretty good in this extended low interest-rate environment,” American Savings President and CEO Richard Wacker said. “We’ve been able to generate loan growth and other income that’s mostly offset (the lower rates) and keep what I think are very good profitability measures. Our return on assets at 1.12 percent in the quarter compared pretty favorably to our peers.”