First Hawaiian net steady in quarter
The bank's profit was flat at $51.9 million while revenue jumped in the second quarter
First Hawaiian Bank said yesterday its net income was flat in the second quarter despite an increase in total revenue.
The state's largest bank in terms of assets equaled its net income of a year ago of $51.9 million even though revenue, which consists of net interest income and noninterest income, gained 3.4 percent to $151.9 million.
Net interest income reflects the difference between what First Hawaiian pays depositors and what it brings in from loans, while noninterest income includes services charges and fees.
"Despite a slowing economy, First Hawaiian continued to perform well in its two primary markets, Hawaii and Guam," said Don Horner, president and chief executive of First Hawaiian. "We saw respectable growth in deposits and the quality of our assets continues to be very good."
During the quarter, First Hawaiian announced the projected fourth-quarter opening of a state-of-the-art supermarket branch in the new Safeway store in Kapahulu, and the completion of a major upgrade to its flagship Waikiki branch.
Total assets rose 5.8 percent to $12.5 billion from $11.8 billion. Total loans and leases increased 1.8 percent to $6.2 billion from $6.1 billion. And total deposits grew 4.5 percent to $9.1 billion from $8.7 billion.
First Hawaiian, which has 57 branches in Hawaii, three on Guam and two on Saipan, is a subsidiary of Honolulu-based BancWest Corp. and a sister bank of San Francisco-based Bank of the West.
Bank of the West posted second-quarter net income of $139 million, down 6.5 percent from record earnings of $148.7 million a year ago.
BancWest, which has assets of more than $66 billion, is owned by French banking giant BNP Paribas SA.