Bank of Hawaii Corp. said today its earnings jumped 15.9 percent in the second quarter as deposits soared and less money was set aside to cover potential loan losses.
The state’s second-largest bank posted net income of $40.7 million, or 90 cents a share, to beat analysts’ forecast of 87 cents. A year ago, the bank earned $35.1 million, or 74 cents a share.
Deposits climbed 15.7 percent to $11.5 billion from just under $10 billion in the year-earlier period.
Bankoh’s loan-loss provision was only $628,000 compared with $3.6 million in the second quarter of 2011. Loans and leases, meanwhile, rose 6 percent to $5.7 billion from $5.4 billion.
Total assets gained 5.7 percent to $13.9 billion from $13.2 billion.
Net interest income, the difference between what it pays depositors and what it brings in from loans, slipped 2.2 percent to $95.4 million from $97.4 million. The net interest margin fell to 2.98 percent from 3.16 percent a year ago due to continuing low interest rates, the bank said.
Noninterest income, which includes money earned from fees and charges, fell 5.3 percent to $46.8 million from $49.5 million.
The bank also maintained its quarterly dividend at 45 cents a share. It will be payable Sept. 17 to shareholders of record at the close of business on Aug. 31.