Bank of Hawaii Corp. increased its dividend for the first time since 2008 as first-quarter earnings soared 18.3 percent and easily beat analysts’ estimates.
The state’s second-largest bank, benefiting from the state’s improving economy, also saw its loan portfolio jump 12.4 percent as the state’s real estate market and construction sector remained strong.
“It was another good quarter,” Peter Ho, chairman, president and CEO of Bank of Hawaii, said today. “It was a great start to 2016. We had very solid loan growth. We had solid deposit growth. Expenses were well controlled. And the company continues its focus on improving our service to the community and our customers.”
Bankoh reported net income of $50.2 million, or $1.16 a share, to beat by 17 cents analysts’ consensus estimate of 99 cents. In the year-earlier quarter, Bankoh had net income of $42.4 million, or 97 cents.
The bank increased its dividend 6.7 percent to 48 cents from 45 cents. It will be payable June 14 to shareholders of record at the close of business on May 31.
The last time Bankoh raised its dividend was in December 2008 when it was increased to 45 cents from 44 cents.
Bankoh’s earning were boosted in the quarter by a $11.2 million net gain resulting from the sale of 100,000 Visa Class B shares. In the year-earlier quarter, Bankoh recorded a $10.1 million net gain from selling its Visa Class B shares.
The bank also benefited last quarter by returning to its income statement $2 million largely due to the full recovery of loans previously charged off related to a commercial client on Guam.