First Hawaiian net rises 5% on fee income

First Hawaiian Bank's net income rose nearly 5 percent in the third quarter on the strength of noninterest income generated from fees and other charges.

The state's largest bank, with $12.5 billion in assets, had earnings of $52.3 million compared with $49.8 million a year ago. Total revenue, consisting of net interest income and noninterest income, rose 3.7 percent to $155.4 million from $149.9 million.

First Hawaiian Bank said yesterday that noninterest income generated from fees and other charges helped lift its earnings nearly 5 percent in the third quarter.

Third-quarter net: $52.3 million Year-earlier net: $49.8 million

The state's largest bank in terms of assets posted net income of $52.3 million compared with $49.8 million a year ago. Total revenue, consisting of net interest income and noninterest income, rose 3.7 percent to $155.4 million from $149.9 million.

"Despite a slowing economy, the bank posted another strong quarter," said Don Horner, president and chief executive of First Hawaiian. "Our relationship strategy continues to serve us well."

Noninterest income gained 5 percent to $38.4 million from $36.6 million.

Net interest income, reflecting the difference between what First Hawaiian pays depositors and what it brings in from loans, grew 3.2 percent to $116.9 million from $113.3 million.

Total assets rose 5.1 percent to $12.5 billion from $11.9 billion. Loans and leases increased 0.9 percent to $6.24 billion from $6.19 billion. And deposits rose 4.7 percent to $9 billion from $8.6 billion.

Earlier this month, First Hawaiian said it became the first financial institution in Hawaii to issue a debit card with a computer chip embedded in the card. The new Priority Rewards Debit Card contains a MasterCard PayPass chip which provides a contactless payment option that reduces transaction times in retail establishments.