First Hawaiian Bank boosted its loans to a record high but saw net income fall 13.4 percent in the first quarter because of $25.7 million in securities sales that was made in the year-earlier period.
The bank’s new holding company, First Hawaiian Inc., said today it earned $56.7 million, or 41 cents a share, compared with $65.5 million, or 47 cents a share, in the first quarter of 2016. The state’s largest bank, which had its initial public offering last August, had no securities sales last quarter.
Loans rose 7.5 percent to a record $11.8 billion.
“We are pleased to start 2017 with a solid first quarter,” First Hawaiian Chairman and CEO Bob Harrison said in a statement.
First Hawaiian’s securities sales pulled down the bank’s noninterest income nearly 33 percent to $49.4 million from $73.5 million in the year-earlier period. The first quarter of 2016 included a $22.7 million net gain on the sale of Visa Class B restricted shares and a $3.1 million net gain on the sales of other securities.
The bank’s results topped analysts’ consensus estimate of 40 cents a share.
First Hawaiian’s stock closed down 24 cents, or 0.8 percent, at $30.29. The financial results were announced after the market closed.