First Hawaiian net up 6.2%

By Dave Segal
dsegal@starbulletin.com

First Hawaiian Bank, navigating through a difficult economic environment, said yesterday that net income rose 6.2 percent in the second quarter.

Second-quarter net:

$55.1 million

Year-earlier net:

$51.9 million

The state's largest bank in terms of assets posted net income of $55.1 million versus $51.9 million a year ago.

"Despite the slowing local and national economies, the bank continued to perform well during the first half of 2008," said Don Horner, president and chief executive of First Hawaiian. "Revenue growth, margin and asset quality all remained strong. Our relationship strategy initiatives, productivity improvements, and consistent credit policies have positioned us well for continued growth."

Assets increased 4 percent to $13 billion from $12.5 billion. Loans and leases jumped 18.3 percent to $7.4 billion from $6.2 billion. And deposits were virtually unchanged at $9.1 billion.

For the first six months, First Hawaiian saw its net income rise 7.7 percent to $111.3 million from $103.3 million a year ago. Revenue increased 12.4 percent to $345 million from $306.9 million.

Nonperforming assets, as a percentage of total assets, remained unchanged from year-end and one of the lowest in the U.S. at 7 basis points.

The bank also noted yesterday that all of its credit ratings have been affirmed by Standard & Poor's Rating Services, which cited "consistent earnings, diversified loan portfolio, and strong asset quality."

During the quarter, First Hawaiian debuted an enhanced Priority Rewards program in which credit and debit card customers earn CashPoints that can be redeemed for cash, AnyTime Travel with no blackout dates on any airline, and gift cards from local and national merchants.

The bank said it now has 155,000 card users.

First Hawaiian, founded in 1858, has 58 branches in Hawaii, three on Guam and two on Saipan. It is a sister bank of San Francisco-based Bank of the West and a subsidiary of the Honolulu-based holding company, BancWest Corp, which is owned by French banking giant BNP Paribas SA.