POSTED: 8:53 a.m. HST, Jul 22, 2013
LAST UPDATED: 12:52 p.m. HST, Jul 22, 2013
Bank of Hawaii Corp.’s earnings fell 7.3 percent in the second quarter amid a low interest rate environment but loans and deposits both increased from the year-earlier period.
The state’s second-largest bank said before the market opened today that net income slipped to $37.8 million, or 85 cents a share. However, that beat analysts’ forecasts of 83 cents a share and sent Bankoh’s shares up 51 cents, or 0.9 percent, to $55.42 on the New York Stock Exchange.
Net interest margin — the spread between the bank’s lending and deposit rates — decreased to 2.77 percent from 2.98 percent in the year-earlier period. Net interest income declined 8.4 percent to $87.3 million from $95.4 million.
Noninterest income, which includes service charges and fees, rose 2.5 percent to $48 million from $46.8 million.
Loans and leases rose 3.3 percent to $5.9 billion and deposits increased 4.4 percent to $7.9 billion but assets fell 1.3 percent to $13.7 billion.
The quality of Bankoh’s loan portfolio showed continued improvement as it did not need to set aside any money for potential loan losses for the fourth straight quarter.
Bankoh maintained its quarterly dividend at 45 cents a share. It will be payable Sept. 16 to shareholders of record at the close of business on Aug. 30.