Bank of Hawaii Corp. posted solid loan growth but saw its net income dip in the fourth quarter after taking a $3.6 million one-time expense tied to a newly enacted tax law.

The state’s second-largest bank said Monday its earnings slipped 1.3 percent to $43 million, or $1.01 a share, from $43.5 million, or $1.02 a share, in the year-earlier quarter. Excluding the additional tax expense, net income was $46.5 million, or $1.10 a share.

For the year, the bank had net income of $184.7 million, or a record $4.33 per share, compared with $181.5 million, or $4.23 a share, in 2016.

Loans rose 9.5 percent to $9.8 billion from $8.95 billion. Deposits increased 3.9 percent to $14.88 billion from $14.32 billion with 40 percent of consumer deposits coming from either ATM or mobile apps. And assets, which topped $17 billion for the first time, gained 3.6 percent to $17.01 billion from $16.49 billion.

The bank’s noninterest expense for the quarter included one-time $1,000 employee bonuses totaling $2.2 million, including payroll taxes. The increase in the minimum wage at the bank to $15 an hour from $12 an hour began Jan. 1 and had no impact on the fourth-quarter results. But the bank said for 2018 it expects its noninterest expenses, including the impact of the minimum wage increase, to be about 2.5 to 3.5 percent above its 2017 expenses of $358 million.

“During the year our loan and deposit balances continued to grow and our net interest margin (the spread between the interest paid on deposits and the rates received as interest on loans) expanded (to 2.98 percent from 2.83 percent) due to increased rates and the positive remixing of our balance sheet,” Peter Ho, chairman, president and CEO of Bank of Hawaii, said in a statement. “Expenses were well controlled and our asset quality, capital and liquidity all remained strong.”

Bankoh’s stock closed down 58 cents at $86.15. The financial results were released before the market opened.