American Savings Bank’s net income declined 24.4% in the first quarter after it set aside $10.4 million for future potential loan losses due to the COVID-19 pandemic.
The state’s third-largest bank, which is a subsidiary of Hawaiian Electric Industries Inc., said today it provided Paycheck Protection Program loans last quarter to more than 2,500 companies and preserved nearly 40,000 jobs.
“Our results reflect a lot of the good work our team delivered as we kicked off 2020, but we also increased our allowance for credit losses to reflect the challenges our customers face in the economic crisis unfolding at the end of the quarter,” American Savings President and CEO Rich Wacker said in a statement. “With healthy capital and liquidity positions, we are devoting our efforts to help customers and the community fight through this storm.”
American Savings posted earnings of $15.8 million compared with $20.8 million in the year-earlier quarter. Loans increased 6.6% to $5.18 billion from the year-earlier quarter. Deposits rose 2.9% to $6.38 billion.
The bank’s net interest income, which is the difference between what it generates from loans and pays out in deposits, fell 4.1% to $61.1 million.
Noninterest income, which includes services charges and fees, edged up 1.4% to $14.8 million.
Hawaiian Electric Industries will announce its first-quarter results on Tuesday.