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Property sales catapult American Savings’ earnings

American Savings Bank’s earnings soared 30% in the fourth quarter after recognizing an after-tax gain of $7.7 million from the sales of its former headquarters at the Financial Plaza of the Pacific and its Mililani Service Center.

The state’s third-largest bank, a subsidiary of Hawaiian Electric Industries Inc., reported today that its net income increased to $28.2 million from $21.8 million in the year-earlier quarter.

For the year, American Savings’ net income rose 7.8% to $89 million.

Those full-year results included an after-tax gain of $5.5 million related to the sales of the former properties. The after-tax gains from the property sales also included the exit costs for the bank to transfer to its new headquarters at 300 N. Beretania St. near Chinatown.

The bank’s loans in the fourth quarter increased 5.7% year over year to $5.12 billion while deposits edged up 1.8% to $6.27 billion.

American Savings’ net interest income, the difference between what it collects on loans and what it pays for deposits, declined 4% to $60.9 million while its net interest margin fell 21 basis points to 3.74%. For the year, though, its net interest margin was 3.85%.

The bank’s noninterest income, which included the $10.8 million pre-tax gain on the properties as well as increased mortgage banking income, jumped 95.4% to $26.3 million.

“We are pleased that this quarter caps a year of strong financial results, driven by healthy net interest margins and improved operational efficiencies,” American Savings President and CEO Rich Wacker said.

Parent company Hawaiian Electric Industries Inc. will announce financial results on Feb. 13.

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