Bank of Hawaii Reports Solid Second Quarter Despite Legal Settlement
By Sonia Isotov
Bank of Hawaii today reported net income for the second quarter of 2011 was $35.1 million, down $7.2 compared to net income of $42.4 million in the first quarter of 2011.
The drop in income was attributed mainly to a previously announced tentative settlement agreement regarding the Company’s overdraft practices.
“Bank of Hawaii’s operating results were solid in the second quarter of 2011, excluding the one-time impact of a legal settlement,” said Peter S. Ho, Chairman, President and CEO in a written statement today.
“Loan growth was modestly higher both on an average and period end basis. Expenses were controlled. Credit quality remained stable and continued to improve from prior year levels. The Hawaii economy remains steady with improved unemployment statistics and continued growth in visitor arrivals and spending. Japan arrivals, as expected, have been muted by the effects of the March earthquake and resulting tsunami. The downturn in arrivals from Japan however has been less severe than anticipated and has been more than offset by visitors from other market segments both domestic and international.”
Loan and lease balances increased to $5.4 billion due to growth in both commercial and consumer loan demand. Deposit growth remained strong during the second quarter, increasing to $10.0 billion at June 30, 2011, up from $9.9 billion in 2010. The allowance for loan and lease losses decreased by $2.4 million to $145.0 million due to the improving Hawaii economy and represents 2.71 percent of outstanding loans and leases.
Other highlights reported this quarter include: diluted earnings per share of $0.74, dividend of $0.45 per share declared by the Board of Directors; and increase in share repurchase authorization by the Board of Directors by $120 million.