Bank of Hawaii Corp.’s second-quarter net income totaled $54.7 million —
$1.30 earnings per share, a record high for the state’s second-largest financial
institution.
BOH reported Monday
a 22.5 percent increase
in net income, up from
$44.7 million, or $1.05 earnings per share, in the year-earlier quarter.
“The Hawaii economy continues to perform
well, due to a healthy
construction pipeline in both the public and private
sectors, continued strong performance in Hawaii’s tourism industry and
rising real estate prices,” said BOH President and
CEO Peter Ho in the
bank’s quarterly earnings call.
Loans grew 7.1 percent
to $10.1 billion at the end of the quarter from $9.4 billion a year earlier, while assets inched up 0.8 percent to $17.1 billion, compared
with $17 billion a year
earlier. Total deposits climbed 1.1 percent to
$14.9 billion from $14.8 billion.
The bank’s revenue includes net interest income, the difference between
what the bank takes in
on loans and pays out on
deposits, and noninterest
income, derived mainly
from service charges and fees. Net interest income rose 7 percent to $121.8 million compared with
$115.3 million, while noninterest income fell 8.7 percent to $41.3 million from $45.2 million, largely due
to lower mortgage banking income and declining
service charges.
“BOH is a top performing, whistle-clean bank,
operating in one of the
most desirable markets
in the U.S., ranking No. 2 in
Hawaii with a 32 percent
deposit market share,”
Laurie Havener Hunsicker, an analyst for Compass Point LLC, wrote Monday
in a research report. “BOH trades at a premium to its peers.”
Bank of Hawaii reported 12 loans affected by the
lava from Kilauea Volcano (four mortgage and eight home equity) with loan
exposure in the Puna district totaling $13.1 million. BOH’s total loan exposure on the Big Island is $719 million.
The bank’s stock price was up 0.1 percent to
$84.66 on Monday. The
financial results were
released before the market opened.
