American Savings Bank reported that net income fell 22.2% in the first quarter from the year- earlier period but said its earnings grew from the previous three months and that it remains well capitalized.
“The bank delivered solid results for the quarter, growing net income (3.7%) over the previous quarter to $18.6 million,” American Savings President and CEO Ann Teranishi said Friday in a statement. “Although we’ve seen a few mainland banks experience challenges in recent months, our capital levels remain strong, well above regulatory required levels, and we continue to maintain ample access to liquidity totaling more than $3 billion, or nearly three times the amount of uninsured deposits.”
Deposits fell 0.7% to $8.23 billion from the year-earlier quarter and edged up 0.7% from the fourth quarter.
We have a strong and resilient deposit franchise, with 86% of deposits from our retail customers, and with 85% of our total deposits F.D.I.C. insured or fully collateralized,” Teranishi said.
The bank, a subsidiary of Hawaiian Electric Industries Inc., said it set aside $1.2 million last quarter for potential loan losses, compared with a year ago when it released $3.3 million from its loan-loss reserve to its income statement. ASB earned $23.9 million in the first quarter of 2022.
The bank’s net interest income — the difference between what it generates from loans and pays out in deposits — rose 10% to $64.9 million in the first quarter from the year-earlier period. Its net interest margin improved by 6 basis points to 2.85% from 2.79%.
Noninterest income, which includes charges and fees, fell 10.9% to $14.4 million as the bank’s mortgage banking income decreased $947,000 from the year-earlier period when the bank also recognized a gain on the sale of real estate.
Loans rose 17% to $6 billion from the the year-earlier period and increased 1.4% from the fourth quarter.
Parent company HEI will announce its first-quarter results May 9. HEI’s stock fell 15 cents to $39.21 before American Savings’ results were announced.
