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First Hawaiian earnings fall 2.6%


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POSTED: Wednesday, July 29, 2009

First Hawaiian Bank posted a 2.6 percent decline in second-quarter earnings but achieved record profits for the first six months of the year.

However, Don Horner, chairman and chief executive of First Hawaiian, cautioned that the bank expects its growth rates to slow over the next 18 months as the economy remains weak.

The state's largest bank in terms of assets said yesterday it had net income of $53.6 million in the three-month period ended June 30, compared with $55.1 million a year ago.

Revenue rose 5 percent to $175.6 million from $167.3 million.

For the first six months, First Hawaiian's net income jumped 15.1 percent to $128.1 million from $111.3 million.

               

     

 

IN THE MONEY

       

Second-quarter net

        $53.6 million

       

Year-earlier net

        $55.1 million

As of June 30, First Hawaiian's total assets were $13.6 billion, a 4.1 percent increase over $13 billion a year ago. Total loans and leases increased 6.6 percent to $7.9 billion from $7.4 billion, and total deposits gained 9.6 percent to $9.9 billion from $9.1 billion.

Nonperforming assets were 0.22 percent of total assets and remained one of the lowest in the U.S.

“;Overall, the bank continued to perform well,”; Horner said. “;Bank core earnings, margins, capital and credit quality all remain strong. Our solid balance sheet is well positioned to offer our customers both financial security and solutions for opportunities as the economy begins to recover.”;

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

The bank is a subsidiary of BancWest Corp., whose parent is French banking giant BNP Paribas.