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First Hawaiian net up 32.6%


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POSTED: Tuesday, April 28, 2009

First Hawaiian Bank's net income soared 32.6 percent in the first quarter after recording a one-time, leveraged lease portfolio tax gain of $21.6 million due to the sale of aircraft and marine equipment.

The state's largest bank in terms of assets posted earnings of $74.5 million compared with $56.2 million in the year-earlier quarter when it had one-time gains from the sale of Visa stock and leveraged lease equipment.

               

     

 

Money talks

       

        » First-quarter net: $74.5 million
       

» Year-earlier net: $56.2 million

       

Excluding the one-time gains for both quarters, First Hawaiian's earnings were up 3.1 percent to $52.9 million from $51.3 million.

“;The bank experienced a respectable quarter, especially given the challenging economic environment,”; First Hawaiian Chairman and Chief Executive Don Horner said yesterday. “;Our fundamentals remain strong, including asset quality, earnings, capital position and margins.”;

Horner said the bank “;modestly”; increased its loan-loss provision during the quarter.

Revenue fell last quarter about 6 percent to $166.8 million from $177.7 million a year ago when the bank had Visa and lease-equipment items that affected revenue. This year's items mostly affected the bank's expenses and taxes but not revenue, Horner said.

Excluding the extraordinary revenue from last year, First Hawaiian's revenue rose last quarter about 2 percent to $166.8 million from $163.9 million.

Total assets increased 3.2 percent to $13.4 billion from $13 billion. Total deposits rose 5.8 percent to $9.5 billion from $9 billion, and total loans and leases gained 17 percent to $8 billion from $6.8 billion.

Nonperforming assets as a percentage of total assets remained low at 0.2 percent compared with 0.06 percent a year ago.

First Hawaiian has 58 branches in Hawaii, three on Guam and two on Saipan. The bank plans to open a newly constructed larger branch in Kailua in May to replace an older facility.