American Savings Bank’s earnings jumped 24.8 percent in the first quarter amid strong deposit growth and improvement in its commercial real estate and consumer loan portfolios.
The state’s third-largest bank, a subsidiary of Hawaiian Electric Industries Inc., posted net income of $15.8 million compared with $12.7 million in the year-earlier quarter.
“We are off to a strong start in 2017 as we continue to deliver for our customers and shareholders,” Rich Wacker, president and CEO of American, said today in a statement. “Our first-quarter results demonstrate strong core deposit growth, higher net interest income and margins, improved operating efficiency, and better asset quality metrics.”
Deposits jumped 10.4 percent during the quarter to $5.68 billion from $5.14 billion in the year-earlier period.
Loans rose 1.8 percent to $4.73 billion from $4.65 billion during the same time frame but dipped 0.3 percent from $4.74 billion at the end of the fourth quarter.
“Total loans declined slightly (from the fourth quarter), reflecting the completion and payoff of a large commercial real estate construction project and the resolution and payoff of a prior nonperforming commercial loan,” Wacker said.
Assets rose 6.8 percent to $6.56 billion from $6.14 billion in the year-earlier quarter.
HEI, which also owns the state’s largest utility, will report overall financial results on May 5. HEI’s stock fell 34 cents, or 1 percent, today to close at $33.52. The bank’s earnings were announced after the stock market closed.