Bank of Hawaii net
rises 47.3 percent

Bank of Hawaii Corp. reported a 47.3 percent jump in second-quarter net income yesterday, when the record quarterly earnings were overshadowed by the surprise departure of Chairman and Chief Executive Michael O'Neill.


O'Neill will leave at the end of August and be replaced by President Allan Landon.

Bank of Hawaii's net income was $44.2 million, or a record 79 cents a share, compared with $30 million, or 48 cents a share, a year ago.

The earnings exceeded analysts' consensus estimate of 71 cents a share but included a couple of special items.

Bank of Hawaii paid $2.2 million to settle litigation in connection with $50 fees it was charging for residential mortgage documentation preparation from 1988. The fees were stopped last year.

The bank also contributed $1 million to the Bank of Hawaii Charitable Foundation during the quarter.

The bank raised its previous earnings guidance for the year to $163 million to $167 million.

Bank of Hawaii saw its total assets edge up 1.4 percent to $9.7 billion from $9.6 billion a year ago, but fell from $10 billion at the end of the first quarter because of temporary government deposits that were taken back by those agencies.

Net loans increased 6.2 percent to $5.7 billion from $5.3 billion.

Total deposits rose 4.6 percent to $7.5 billion from $7.1 billion a year ago.

The bank's net interest margin, which reflects the difference of what a bank pays depositors and what it brings in from loans, edged up to 4.17 percent from 4.12 percent a year ago.

The board increased the authorization under the bank's share repurchase program by an additional $100 million of common stock to bring the total repurchase authority to $1.15 billion.

Bank of Hawaii's return on assets ratio, which indicates how many dollars of profits it achieves for each dollar of assets it controls, rose to 1.80 percent from 1.27 percent a year ago.

"The 1.80 percent is among the highest in the country and we're very proud of the results," O'Neill said.

Bank of Hawaii

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