American Savings Bank posted a 29.1 percent jump in fourth-quarter earnings and achieved its highest full-year profit ever as it benefited from stable loan and deposit growth as well as higher interest rates.
The state’s third-largest bank reported Wednesday after the market closed that its net income rose to $21.8 million from $16.9 million in the year-earlier period. Loans rose 3.7 percent to $4.84 billion and deposits increased 4.6 percent to $6.2 billion. Its net interest margin — the spread between how much American Savings pays for deposits and what it charges to lend out money — was 3.95 percent in the fourth quarter compared with 3.68 percent in the year-earlier quarter.
For the year, American Savings’ net income rose 23.2 percent to $82.5 million from $67 million in 2017.
“2018 was a record year for the bank, reflecting the combination of a healthy Hawaii economy, the benefits of tax reform, and the hard work of our ASB teammates to improve efficiency and deliver disciplined growth,” ASB President and CEO Rich Wacker said. “We are excited about the opportunity for continued efficiency and operational improvements with our transition to our new corporate campus during the first quarter of 2019.”
American Savings said it expects to be fully moved into its new headquarters the next time it reports earnings at the end of April. Construction ended last month.
The bank plans to move 660 of its approximate 1,140 employees into the 11-story building across from Aala Park at 300 North Beretania St. in time to open in April, Wacker said. The building has 373,000 total square feet and 166,000 square feet of office space. It has five levels of parking among its 11 stories.
“Once receiving the ‘keys’ from (general contractor) Nordic PCL, we began installing furniture, wiring and getting the building ready for our big move,” Wacker said. “We have not started the move-in process yet. The ASB Campus will allow us to work better together while providing an even greater experience to our customers and partners.”
As part of its consolidation, American Savings also said it is putting its Downtown Honolulu office building, which is next to its main branch, and its Mililani service center on the market. The 12-story, 60,000-square- foot downtown building at 915 Fort Street Mall will be listed at $13.5 million and its 30,000-square-foot center in Mililani Technology Park will be listed at $9.3 million.
The properties will be listed by the end of this week or early next week, Wendell Brooks III, senior vice president of retail services at JLL, said Wednesday.
Hawaiian Electric Industries Inc., parent company of the state’s largest utility and American Savings, will report its earnings on Feb. 15. HEI’s stock rose 15 cents to $36.55 on Wednesday.
FOURTH-QUARTER NET
$21.8 million
YEAR-EARLIER NET
$16.9 million
