First Hawaiian Bank’s net income in the second quarter grew 21.4 percent over the previous year to $69.1 million, or 50 cents per share, following a large stock sale by its former majority shareholder.
The state’s largest bank’s profit compares with $56.9 million, or 41 cents per share, in the year-earlier quarter. The bank’s board of directors declared a 24-cent quarterly dividend per share payable Sept. 7.
The company’s strong earnings were driven by positive loan growth, margin expansion and good asset quality, Bob Harrison, company chairman and CEO, said in a news release.
“We are very pleased with our solid performance in the second quarter. Our profitability metrics continued to improve,” he said.
Former majority shareholder, French giant BNP Paribas, reduced its ownership in First Hawaiian to below 50 percent in May, raising $503.5 million for the Paris bank. Included in the total is $421.7 million BNP raised by selling 15.3 million shares at $27.56 apiece and an additional $81.8 million that BNP received when First Hawaiian bought back nearly 3 million shares.
In June the underwriters of BNP’s secondary stock offering — Goldman Sachs & Co., Citigroup, JPMorgan Chase and Deutsche Bank — purchased an additional 1.53 million shares, reducing BNP’s stake even further to 48.8 percent.
Quarterly net interest income, the difference between what the bank takes in on loans and pays out on deposits, totaled $141.4 million, up from $131.3 million a year, the bank said.
Meanwhile, noninterest income, derived mainly from service charges and fees, totaled $49.8 million, down from $50.6 million, primarily because of lower service charges on deposit accounts.
Loans and leases totaled $12.6 billion as of June 30, up 4.8 percent from $12.1 billion, while deposits fell to $17.4 billion, compared with $17.5 billion. Total assets climbed to $20.5 billion from $20.4 billion.
ON THE MOVE
The Queen’s Health Systems has announced the following three new directors:
>> Kristen Croom is the new director of pathology, laboratory and molecular services. Croom has 13 years of laboratory management and hospital laboratory experience, including molecular diagnostics work at University of Texas MD Anderson Cancer Center and The Mayo Clinic.
>> Eric King is the new director of Queen’s 340B Program. King, a certified project management professional, has 12 years of pharmaceutical industry experience, including the 340B operations and pharmacy managed care for a large health system in Oklahoma.
>> Dr. Marcy (Matsukawa) Rapp is the new director of pharmacy services. She has nearly 10 years of hospital and clinical pharmacy experience, including being appointed interim director of pharmacy in November. Rapp joined The Queen’s Medical Center in 2007 and served as a clinical pharmacist from 2008 to 2013.
