First Hawaiian enjoys record profits, warns of slowdown
First Hawaiian Bank posted record profits for its most recent quarter and the first six months of this year as assets, loans and leases, and deposits all increased from a year earlier.
The state's largest bank in terms of assets said yesterday its earnings rose 25.3 percent in the second quarter to $51.9 million, and 25.9 percent during the first six months to $100.6 million, the first time the bank has exceeded $100 million halfway through a year. In 2005, First Hawaiian had net income of $41.4 million in the second quarter and $79.9 million at midyear.
"The bank experienced an exceptional quarter thanks to a continued positive economy and a highly customer-focused group of employees," said Don Horner, president and chief executive of First Hawaiian. "We expect 2006 to be a strong year for FHB, but the economy is clearly showing signs of slower growth."
First Hawaiian said assets grew 7.7 percent to $11.8 billion from $11 billion. Bank of Hawaii Corp. ranks second in the state for assets with $10.3 billion.
First Hawaiian's loans and leases grew 6 percent to $6.1 billion from $5.8 billion while deposits increased 6.8 percent to $8.7 billion from $5.8 billion.
Nonperforming assets made up 0.02 percent of total assets at the end of last quarter compared with 0.03 percent a year earlier.
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.
BancWest, owned by French banking giant BNP Paribas SA, announced earlier this year it would stop issuing quarterly earnings releases but that First Hawaiian and Bank of the West would issue individual earnings results.
BancWest had total assets of $66.7 billion at the end of the second quarter.