American Savings Bank achieved loan growth in the third quarter but posted a 13.2 percent drop in earnings after setting aside more money for potential loan losses and generating less mortgage income than in the year-earlier period.
The subsidiary of Hawaiian Electric Industries Inc. said Thursday it had net income of $13.3 million compared with $15.3 million in the third quarter of 2013.
American Savings said the quarterly earnings comparison also was impacted by a $1 million net gain in the year-earlier third quarter after completing the sale of its credit card portfolio to First Bancard, a division of First National Bank of Omaha. The higher loan-loss provision and lower mortgage income each accounted for $1 million less of net income.
Loans receivable, though, increased 7.1 percent to $4.3 billion from $4 billion in the year-earlier quarter.
Parent company HEI will report its earnings on Nov. 6.