American Savings Bank’s net income jumped 7.9% in the third quarter on strong loan growth and a steady net interest margin that was achieved despite the challenges of a lower rate environment.
The state’s third-largest bank posted earnings today of $22.9 million compared with $21.2 million in the year-ago quarter. Loans rose 6% to $5.08 billion. The bank’s net interest margin, which reflects the difference between what it collects on loans and what it pays for deposits, was up 1 basis point to 3.82%.
American Savings’ net interest income edged up 1.5% to $62.1 million. Noninterest income, which includes service charges and fees, jumped 6.7% to $16.3 million as the bank’s mortgage banking income soared eightfold to $1.5 million from $169,000.
“Our results and earnings growth reflect good performance in a volatile market environment,” American Savings President and CEO Rich Wacker said. “In October, we completed the sale of our former headquarters, achieving another important milestone from the transition to our new campus.”
Parent company Hawaiian Electric Industries Inc. will report its full financial results on Friday.