American Savings Bank reported today an 8.5 percent increase in fourth-quarter earnings but cautioned it expects construction loan volume to level off this year.
The state’s third-largest bank also said a ground-breaking ceremony for its new headquarters in Chinatown will be held next month with actual construction work to start sometime in the first quarter.
“We closed 2016 with a strong fourth quarter and positioned the bank to deliver for our customers and shareholders in 2017,” American Savings President and CEO Rich Wacker said in a statement.
American Savings’ earnings increased to $16.2 million in the October-December period from $15 million in the year-earlier quarter. Loans edged up 2.6 percent to $4.74 billion but deposits jumped 10.4 percent to $5.55 billion.
“We believe we are past the peak of the cycle for new construction lending growth and expect construction loan volume to level off in 2017,” Wacker said in an email. “We have modest loan growth expectations and are expecting low- to mid-single-digit loan growth in 2017.”
For the year, American Savings’ earnings rose 4.7 percent to $57.3 million from $54.7 million in 2015.
Hawaiian Electric Industries Inc., which owns the bank as well as the state’s largest utility, will report the overall financial results on Feb. 14.