But the company dismissed the remarks as "analysts' speculation" and stressed that the local bank is not for sale.
Arthur Soter, an analyst with Morgan Stanley & Co., said he expects BankAmerica to sell its 42-branch Bank of America-Hawaii unit, which he said has performed below expectations.
Joseph Morford, banking analyst with Alex Brown & Sons Inc., made a similar forecast in February when he said San Francisco-based BankAmerica may exit its Hawaii and Alaska operations due to soft local economies and the bank's relatively weak competitive position in those markets.
Morford said Tuesday that BankAmerica's Hawaii unit, the state's third largest financial institution, has been less profitable than those in other markets. He also noted that the bank's local presence is relatively small compared to competitors like Bank of Hawaii and First Hawaiian Bank.
Rick Humphreys, chief executive officer of Bank of America-Hawaii, this morning said the parent company has not put its Hawaii operations for sale. Like many other BankAmerica subsidiaries, the Hawaii bank must meet the parent company's return on investment demands, which the local company intends to do, he said.
But unlike other bank divisions, Bank of America-Hawaii is a "start-up" bank whose performance can't be compared with the more mature businesses within BankAmerica, said Humphreys, who noted that the bank's customer base and staffing have grown recently.
"I think we have made a competitive (difference) here in Hawaii and customers have benefited," he added.
Bank of America-Hawaii employs about 1,000 workers in Hawaii.
Soter's views were detailed in an article last month in American Banker, an influential trade newspaper. The article mentioned that BankAmerica was considering restructuring its Europe, Middle East and Africa divisions. The article also said that the bank may sell or close 60 of its 250 Texas branches and sell its Hawaii unit.
The company has since sold 68 branches in Texas as part of its plan to "fine tune" its operations there, said Betty Reiss, vice president and public relations manager for BankAmerica.
Soter could not be reached for comment this morning.
BankAmerica entered Hawaii in 1992 when it purchased the former Honfed Bank for $165 million. Since then, the company's local deposits have declined while their mortgage lending has dropped, said Richard Dole, research director at Fry & Co. in Honolulu.