Profit dipped a bit at Hawaii’s largest bank in the third quarter even as more deposits pushed total assets of First Hawaiian Inc. above $25 billion.

The holding company for First Hawaiian Bank reported earning $64.3 million in the three months ending Sept. 30, down 1% from $65.1 million in the same quarter of 2020.

The slight decline stemmed partly from a decrease in commercial lending in the recent quarter that included a dropoff in Paycheck Protection Program loan holdings.

Overall, the bank said it had a good third quarter.

“We are pleased with the bank’s solid performance in the third quarter,” Bob Harrison, company president and CEO, said in a statement. “We had good growth in deposit balances, credit quality remained excellent, and we are seeing an increase in loan activity.”

Deposits surged 17% to $22.1 billion in the third quarter from $18.9 billion in the same period of 2020.

Total assets grew nearly 15% to $25.5 billion from $22.3 billion.

The value of loans and leases decreased by 5%, or by about $670 million, to $12.8 billion in the recent quarter from $13.5 billion a year earlier.

First Hawaiian reported that most of the decline stemmed from commercial loans, including PPP loans that can be forgiven if borrowers meet certain conditions under the federal coronavirus pandemic aid program in which private lenders issued the loans to businesses.

Partially offsetting the bank’s commercial loan decline was growth in loans for homes, commercial real estate and construction.

Most of First Hawaiian’s income is derived from the interest it earns on loans offset by interest it pays customers for deposits.

This net interest income slipped 1% in the third quarter to $132.6 million from $134 million a year earlier.

Noninterest income, which includes charges and fees, rose 3% to $50.1 million from $48.9 million in the same comparable period.

First Hawaiian, which released its third-quarter financial results Friday and maintained its quarterly stock dividend at 26 cents per share, continued to buy back stock for a third consecutive quarter. The company reported repurchasing 800,000 shares at $27.76 on average for a total cost of $21.6 million.

An authorization by First Hawaiian’s board allows the company to spend another $21.5 million on the buyback program if desired.

Shares of First Hawaiian stock closed Friday at $29.64 after the earnings announcement, up from $29.41 Thursday and $16.77 a year ago.